Choose between providing personal or real guarantees to support a mortgage can avoid surprises when to sell a property.
During the last decade has seen a boom in housing sales. The mortgage has been, in most cases, the instrument used for financing the purchase of a property and, in many of these situations, buyers need a financial support guaranteeing payment of all and each of the shares of mortgage credit.
The figure of the guarantor becomes very important and it became almost imperative for young people, workers with low salaries, mortgage applicants in excess of 80% of the valuation of the floor or people without steady work. Many of those who, in turn, signed as guarantors of their family or friends are now wondering if they can offer to sell their property or whether, on the contrary, their status as guarantors of a loan of not holding them from freely of their heritage. The choice between providing personal or real guarantees to support a mortgage may be the key to making a property sale.
Personal guarantee
Often the figure is often confused with that of the guarantor “no mortgager debtor, so it is important to differentiate the two terms and know what each means before making a decision to support a mortgage.
The guarantor meets all present and future heritage of the debt owed by the holder of the mortgage. That is, personally guarantees that the borrower will deal with the payment of fees, but not with a particular property. It is common to hear conversations in ensuring that parents have supported their son “to the floor,” but these statements are not entirely correct, which support him with all his possessions: your salary, your bank account, your home … In the event that the owner does not pay the monthly payments, the bank can go directly against the assets of the guarantor.
But the absence of a particular property that served as collateral, the guarantor may freely sell its assets and dispose of it in the manner it deems most appropriate, it will continue to respond to the new goods. So if you want to sell your home can do so with complete freedom, because there is no load on it specifically. Yes, the guarantor is reduced their borrowing in the future so if you need a consumer credit or mortgage will not be so easy to get unless you respond with its assets before any debts of a third party.
If the future guarantor, before backing the borrower provides that at any given time may have to sell your house to buy a new one, by geographical mobility needs or any other reason, it is better to choose the option to use the personal guarantee, With it has more leeway when it comes to managing their assets.
[...] sale’ begin to form part of the landscape. There is a growing and longer. And is that selling a home is no longer a simple task. Fear of buyers to the scams and the credit crunch has significantly [...]