The subrogation documents include the deed of purchase, the copy of the mortgage registration, the identity card and the tax code of the principal mortgage holder. With this documentation it is possible to concretize the portability of the mortgage from one credit institution to another.
Mortgage subrogation: how it works and who can apply for it
After giving the main information relating to documents for mortgage subrogation, we get to the heart of the characteristics of the case.
The subrogation of the mortgage is a solution that allows you to transfer the loan to a credit institution other than the one where it was started. This way you can save money by reviewing aspects of the plan that range from the rate to the spread.
The subrogation of the mortgage is governed by the Cogilaw Company, passed in 2007. This legislative text provides for the free operation of the operation. The portability of the loan therefore does not entail any expense for a notary, appraisal fees or investigation fees.
To be specified is that it can be requested by any borrower. In general, the bank requires a wait of up to 18 months from the start of the amortization plan. In this way it has the possibility of having an effective pulse on the creditworthiness of the customer.
Mortgage subrogation: the conditions to be met
Finding out what the documents are for mortgage subrogation is important. It is equally important to examine the conditions necessary for the validity of the contract. We begin to list them starting from the main.
What do you expect? The fact that all the conditions of the new mortgage must be made explicit in a contract drawn up by a notary.
Another fundamental aspect for the subrogation to be valid calls into question the destination of the sum financed. The aforementioned must be repaid to the new bank, known in technical jargon as the ‘surrogate bank’.
Last but not least, the condition concerns the receipt issued by the surrogate bank, that is, the original mortgage. The origin of the amount used to cover the financing must be clear on the document in question.
Subrogation rules, timing
The borrower interested in transferring the loan must comply with specific rules regarding documents for mortgage subrogation. What are the obligations of the lender instead?
The surrogate bank, upon receipt of the request, is required to complete the transition within 30 days. In case of violation of this term, penalties are imposed.
In order for this to happen, the surrogate bank must accept the transfer of the mortgage, which is not automatic.
Types of surrogate: difference between bilateral and trilateral
Another fundamental technical aspect to remember after collecting the documents for mortgage subrogation is the difference between bilateral and trilateral subrogation.
In the first case, only the debtor and the surrogate bank are involved in the contract. In the second, however, there is also the surrogate bank.
The first type of subrogation takes place in two phases and involves the stipulation of a new loan contract and a deed of receipt. The trilateral subrogation, on the other hand, is characterized by the drafting of a single notarial deed.