You can't sell the house or transfer the ownership until the mortgage is paid off. Only after paying off the house loan can the transfer formalities be handled. Specifically, the seller can apply to the bank to repay the loan in advance, pay off the arrears, take out the real estate license and cancel the mortgage loan, and then sell the house normally.
Although the house that has not paid off the loan is still mortgaged and cannot be listed and traded, in reality, it can be realized in some ways.
Method 1: Re-mortgage.
The so-called "secondary mortgage" refers to a loan that sells or transfers personal housing to a third person and applies for personal housing loan to change the loan term, change the borrower or change the collateral. However, it is understood that there are very few banks that can remortgage at present, and some cities such as Beijing have stopped remortgage a long time ago, so this method is rarely used at present.
Method 2: Pay off the remaining loan with the buyer's down payment.
This is the most widely used model in second-hand housing transactions at present, which is suitable for the situation that the original owner's loan amount is low or the remaining loan amount is small after a large amount of repayment. Usually, the buyer will recognize the down payment of 30% to 40% of the total turnover of the property, and the seller can use the down payment of the buyer to pay off the remaining loan, and then cancel the mortgage registration of the property and make the next transaction.
Method 3: Use bank loans to pay off the remaining loans.
If the above two methods fail, then the seller can consider using the collateral under his name (such as other real estate) to apply for a mortgage loan from the bank to settle the mortgage loan. Wait until the buyer pays the full amount before paying off the bank mortgage.