Do Banks Own a Property Until the Mortgage is Paid Off

neutral guy

Woshy wrote: »

has been so good for my mental health.



!

Do not forget.House owner is the bank you only pay the rent /mortgage.Your mental health is OK for now but there will be many changes until you will pay your debt.

Ush1

neutral guy wrote: »

Do not forget.House owner is the bank you only pay the rent /mortgage.Your mental health is OK for now but there will be many changes until you will pay your debt.

No the bank is not the owner, the bank can't sell his house but he can.

neutral guy

Ush1 wrote: »

No the bank is not the owner, the bank can't sell his house but he can.

He cant sell his house until his owner Bank wil let him.Everybody who did not pay back to house owner Bank is not the house owner.The bank will sell his house after his death as house owner if the buyer will not pay his debt.Untill you did not paid your bill you are not house owner.

Hubertj

neutral guy wrote: »

He cant sell his house until his owner Bank wil let him.Everybody who did not pay back to house owner Bank is not the house owner.The bank will sell his house after his death as house owner if the buyer will not pay his debt.Untill you did not paid your bill you are not house owner.

You’re talking nonsense. Heard of life assurance?

Graham

Mod Note

thread split

Gumbo

neutral guy wrote: »

He cant sell his house until his owner Bank wil let him.Everybody who did not pay back to house owner Bank is not the house owner.The bank will sell his house after his death as house owner if the buyer will not pay his debt.Untill you did not paid your bill you are not house owner.

You might be mixing up laws of other countries but here in Ireland you must have a life policy in place.

On death, the life insurance pays back the mortgage lender (bank) and the house goes to the estate of the deceased.

neutral guy

Hubertj wrote: »

You’re talking nonsense. Heard of life assurance?

You cant sell property without agreement with bank.Bank will sell your property and will pay you your mortgage difference which you paid.You are not owner of the property until you did not paid your bill to the bank.Every person who avoid pay mortgage losing ownership of the property ant can not sell it.They could sell it but they will never get full price because bank will take his part.

neutral guy

Hubertj wrote: »

You’re talking nonsense. Heard of life assurance?

You cant sell property without agreement with bank.Bank will sell your property and will pay you your mortgage difference which you paid.You are not owner of the property until you did not paid your bill to the bank.Every person who avoid pay mortgage losing ownership of the property ant can not sell it.They could sell it but they will never get full price because bank will take his part.

neutral guy

Gumbo wrote: »

You might be mixing up laws of other countries but here in Ireland you must have a life policy in place.

On death, the life insurance pays back the mortgage lender (bank) and the house goes to the estate of the deceased.

The Bank is the Owner until you paid your bill.If you bought house for 200K for example and paid your part lets say 2K and sold this house for 230K the bank will take from you inteterest (depends on mortgage contract) and will take his money.Depends on rates and situation .Even selling for over 200K you could still own money to the Bank.

Glory83

neutral guy wrote: »

You cant sell property without agreement with bank.Bank will sell your property and will pay you your mortgage difference which you paid.You are not owner of the property until you did not paid your bill to the bank.Every person who avoid pay mortgage losing ownership of the property ant can not sell it.They could sell it but they will never get full price because bank will take his part.

You can sell the property if you want if you now the value of the property will pay back the loan amount left of the bank. Obviously, if you cannot keep your monthly repayment, the bank will repossess the house in the end and sell it to get back their money.

awec

neutral guy wrote: »

The Bank is the Owner until you paid your bill.If you bought house for 200K for example and paid your part lets say 2K and sold this house for 230K the bank will take from you inteterest (depends on mortgage contract) and will take his money.Depends on rates and situation .Even selling for over 200K you could still own money to the Bank.

This is not how it works.

neutral guy wrote: »

You cant sell property without agreement with bank.Bank will sell your property and will pay you your mortgage difference which you paid.You are not owner of the property until you did not paid your bill to the bank.Every person who avoid pay mortgage losing ownership of the property ant can not sell it.They could sell it but they will never get full price because bank will take his part.

Of course you can.

The only time you cannot is when your outstanding mortgage amount is greater than the value of the property (i.e. negative equity), because the property is the security against the money that you owe the bank, not because the bank own the house. You own it.

neutral guy

Glory83 wrote: »

You can sell the property if you want if you now the value of the property will pay back the loan amount left of the bank. Obviously, if you cannot keep your monthly repayment, the bank will repossess the house in the end and sell it to get back their money.

I completely agree with this ! That exactly what I mean ! The sale process going trough the Bank because Bank is the owner until bill fully paid.Everybody can sell property with mortgage behind anytime but Bank take his money first.

The bank don't own any property. They have a legal charge on the property. Which means they gave you a lend of money to buy a property, but they can repossess the property if you don't pay back the money.

As per repossession, they are taking the property from the owner. If the bank owned it, they'd just evict the homeowner as they would merely be a tenant of the bank's.


EDIT: As they have a financial interest in the property, of course you have to inform them if you want to sell it. If me and you went into business together as a company, and I invested into it, and then you wanted to sell it, I'd expect to be consulted.

ted1

The person with the deeds own the house. Until you discharge the mortgage, you won’t get the deeds

awec

neutral guy wrote: »

I completely agree with this ! That exactly what I mean ! The sale process going trough the Bank because Bank is the owner until bill fully paid.Everybody can sell property with mortgage behind anytime but Bank take his money first.

When you sell the house you pay back the money you owe on the mortgage, since the property it was secured against is no longer yours.

The amount you pay back does not correspond to them owning the property. The bank can't say they own half the house, so they get half the sale price for example. They get back your outstanding loan, no more, no less.

100% of the profit (if any) is yours, as the owner.

December2012

ted1 wrote: »

The person with the deeds own the house. Until you discharge the mortgage, you won’t get the deeds

\

That's not strictly true. The bank hold onto the Deeds as security while the mortgage is due and owing. But that, in itself, nor the mortgage, means that they own the house. The owner owns the house. The bank simply has security.

neutral guy

awec wrote: »

When you sell the house you pay back the money you owe on the mortgage, since the property it was secured against is no longer yours.

The amount you pay back does not correspond to them owning the property. The bank can't say they own half the house, so they get half the sale price for example. They get back your outstanding loan, no more, no less.

100% of the profit (if any) is yours, as the owner.

Agree with this.But mortgage holder is not the owner untill he paid the bill.Mortgage holder cant take the money without paying outstanding balance what mean he is not full property owner.The owner of the house is who take 100 per cent price for it if owner has to share it with somebody that mean he is not property owner.In my contract with Bank ,Bank is the property owner untill I pay the bill fully but I can do with property what I want but Bank will be first who will take his part.What mean I am not property owner because I have share or pay the bill fully to the Bank first

Gumbo

neutral guy wrote: »

Agree with this.But mortgage holder is not the owner untill he paid the bill.Mortgage holder cant take the money without paying outstanding balance what mean he is not full property owner.The owner of the house is who take 100 per cent price for it if owner has to share it with somebody that mean he is not property owner.In my contract with Bank ,Bank is the property owner untill I pay the bill fully but I can do with property what I want but Bank will be first who will take his part.What mean I am not property owner because I have share or pay the bill fully to the Bank first

I borrow €100 from bank to buy house.
I sell house for €120.
I pay back the bank €100.
I clear €20 (minus fees, costs etc)

I’m simplifying things here as you are grossly over complicating the relationship the bank as a mortgage lender hold over your property as a home owner.

neutral guy

Gumbo wrote: »

I borrow €100 from bank to buy house.
I sell house for €120.
I pay back the bank €100.
I clear €20 (minus fees, costs etc)

I’m simplifying things here as you are grossly over complicating the relationship the bank as a mortgage lender hold over your property as a home owner.

Not really.
If you take 100
You will have pay lets say 45 interest per year
If you will sell for 100 you will still own the 45 interest plus 5 for fees
You will have sell for 150 if you would like stay with 0

neutral guy

Gumbo wrote: »

I borrow €100 from bank to buy house.
I sell house for €120.
I pay back the bank €100.
I clear €20 (minus fees, costs etc)

I’m simplifying things here as you are grossly over complicating the relationship the bank as a mortgage lender hold over your property as a home owner.

Or yes,price and interest plus fees will be 120 what is correct .

December2012

The interest gets added onto the mortgage all the time, so you dont pay back what you borrowed, you pay what is actually due (which will take account of deductions and also take account of interest).

neutral guy

[Deleted User] wrote: »

The bank don't own any property. They have a legal charge on the property. Which means they gave you a lend of money to buy a property, but they can repossess the property if you don't pay back the money.

As per repossession, they are taking the property from the owner. If the bank owned it, they'd just evict the homeowner as they would merely be a tenant of the bank's.


EDIT: As they have a financial interest in the property, of course you have to inform them if you want to sell it. If me and you went into business together as a company, and I invested into it, and then you wanted to sell it, I'd expect to be consulted.

Agree.But if you dont pay the mortgage you will get nothing selling the house and you will own interest/fees/fines to the Bank.So it will be like social housing which will never will be yours.
What about if mortgage holder die,can bank put the house for sale then ?

Geuze

How could anybody actually think that banks own houses?

Banks own mortgage loans.

The mortgage loans are an asset on the bank's balance sheet.

There aren't any houses on the bank's balance sheet!!!

Has the education system dumbed-down so much here?

ger664

You own the house and have the title deeds (with your solicitor). When you buy the house the bank are registered on the deeds as having an interest in the property. So you can not sell without their approval. When you clear your loan you have to re register the deeds to remove their interest.

At least that's what happened when I cleared down my mortgage in 2006

Geuze

neutral guy wrote: »

The sale process going trough the Bank because Bank is the owner until bill fully paid.Everybody can sell property with mortgage behind anytime but Bank take his money first.

I own my house.

The bank don't own it.

I have a mortgage.

The bank have a first charge against my house, lodged with the PRAI.

The bank do not own my house.

Geuze

neutral guy wrote: »

What about if mortgage holder die,can bank put the house for sale then ?

No.

If I die, the mortgage debt is paid off by the MPP.

neutral guy

neutral guy wrote: »

Agree.But if you dont pay the mortgage you will get nothing selling the house and you will own interest/fees/fines to the Bank.So it will be like social housing which will never will be yours.
What about if mortgage holder die,can bank put the house for sale then ?

If you don't pay your car loan you can't sell the car, either.


You own the house, but the bank have an interest in it financially, as they gave you the money and it was specifically secured against your house.


The bank aren't calling around to service the boiler or giving an opinion on what wallpaper looks best for the feature wall in the sitting room. They're not objecting to you building an extension or sending a mate around to help you carry a washing machine in.


The only involvement they have is on paper to say that you borrowed X amount of money, and you said they could take the money by taking possession of the house if you don't pay them.


If you die, the bank will ask for their money from whoever insured your life. If Mammy and Daddy die, Son and Daughter aren't going to have the choice of either be kicked out or pay the mortgage.

ger664

ger664 wrote: »

When you clear your loan you have to re register the deeds to remove their interest.

At least that's what happened when I cleared down my mortgage in 2006

Is there any effort or hassle involved in that, out of curiousity? Another trip to a solicitor? or do the bank do it on your behalf (seen as theyve been charging an arm and a leg over the previous decades?)

ger664

Deleted User wrote: »

Is there any effort or hassle involved in that, out of curiousity? Another trip to a solicitor? or do the bank do it on your behalf (seen as theyve been charging an arm and a leg over the previous decades?)

No you have to fork out (at the time €125) to re-register the deed. Straightforward enough quick call and cheque to my solicitor. In saying that I cleared my loan with a lump sum as in it didn't go full term so maybe the bank where not to obliging due to loss of interest etc.

chops018

I am a Solicitor who specializes in Property.

The answer is no, the bank does not own the property until it has been paid off.

As has been mentioned on the thread already, banks have a legal charge over the property (the "mortgage") and as a chargeholder they can exercise certain powers under the mortgage if you stop making your mortgage repayments, this includes repossession. But, they cannot just rock up and take the house, they have to adhere to the laws of Ireland surrounding mortgages and generally they have to initiate possession proceedings in court which can take years in some cases. Principal private residences are protected under CCMA legislation and every opportunity is generally given to the home owner to try and sort things out with the bank, the banks are usually obliged to try and sort things also rather than repossess the property. Obviously, if after exhausting all avenues, the loan is not sustainable then the bank will have to plough on with repossession proceedings and take possession of the house and sell it and clear the loan, or, if there is a shortfall, chase the borrowers for the shortfall as unsecured debt or just write it off.

A quick example. Say John Doe buys a registered property and gets a mortgage from a bank to do so. Once the purchase is completed the Solicitor lodges the Deed of Transfer which transfers the sellers ownership to the purchaser (John Doe) with the Land Registry and also lodges the Mortgage within the Land Registry. The Land Registry then issue a Folio. Part 1 of the folio details the property in question, Part 2 details the ownership - so this will show previous owners details crossed out and now show John Doe as current registered owner, then at Part 3 you have Burdens and this will show the Banks Mortgage and if there was any previous mortgages that were registered as burdens on the folio which were cleared these will be crossed out, also if there are any other burdens affecting the land such as easements or rights of way or any further mortgages or judgment mortgages then these will be registered against the folio and listed here.

Hope that clears things up.

In summary, the answer is no, the bank do not own the property.

coffee_cake

Geuze wrote: »

How could anybody actually think that banks own houses?

Wonder if confused with HP