Can I transfer my home if I still owe my mortgage loan?

It is known as “transfer” to the process by which the holder of a mortgage loan assigns his debt and the property that is associated with it to another person, generally in exchange for a sum of money.

Overstep one house of Infonavit allows the beneficiary of the credit rid of debt without losing your investment in case you do not already have the solvency to cover the mortgage.

Despite seeming to be a simple process, people who want to transfer their property should know that there are certain conditions with which they must agree to carry out the process, so if you are interested in transferring your home we will tell you some important aspects to consider.

How to transfer an Infonavit house?

Generally, to pass one house of Infonavit or other financial institution is required to go to the financial institution that issued the mortgage and apply for a procedure called “debtor substitution”.

Once this entity approves the substitution, a notary draws up a document called “deed of faith of the transfer”, as well as the new property deed, where the new owner of the debt is recognized as the rightful owner of the house.

However, before starting the transfer of the Infonavit house, both the credit holder and the person interested in acquiring the debt must be informed that Infonavit does not recognize the transfers.

According to the institute, although the transfer is a process recognized by law, an Infonavit home cannot be transferred before them. Even with a notarized document that supports the transfer of the Infonavit house, the institute recognizes the original debtor as the owner of the debt and owner of the property.

This means that if the original owner died, the house would become the property of his spouse or beneficiaries registered with Infonavit. Also, if the new owner defaulted on the mortgage, the original owner would be obligated to pay the debt.

Alternatives to the transfer of an Infonavit house

Although an Infonavit home cannot be transferred, certain procedures allow a person to modify their mortgage credit or get rid of debt, depending on their needs.

Cambiavit by Infonavit is a type of credit that allows you to transfer an Infonavit house when it is no longer suitable for the holder of the loan, either because you need a larger house or because you need to move to another city.

Cambiavit is not a modality designed to transfer the Infonavit house and get rid of the debt resulting from the mortgage credit, but to improve the living conditions of the beneficiary by obtaining a house that better meets their needs.

To process Infonavit’s Cambiavit it is necessary:

  • Have a valid Infonavit credit with a minimum of 2 years old.
  • Have an individual Infonavit credit.
  • Be up to date with payments.
  • Not having used an extension in the last 24 months.
  • Not having used the Payment Protection Fund in the last 6 months.
  • The house must have a notarial deed and be registered in the Public Property Registry.

Payment dation

In case you are looking to transfer your Infonavit home to get rid of the debt associated with it, the payment date before Infonavit is an alternative that you can consider, although it has many negative aspects.

Through the dation of payment before Infonavit, the beneficiary of the loan transmits the public deed of the fully paid mortgage loan, however, he does not keep the home he acquired.

Many beneficiaries prefer to take the risks of transferring their Infonavit home rather than processing the payment before Infonavit since under the payment you will not only lose the money invested in the property both for the payment of the credit and in taxes, remodeling, and payment of services, but also you will no longer have the right to process another Infonavit loan.

Property sale

Although an Infonavit house cannot be transferred, this institute does allow the sale of the property even when the beneficiary has not paid off the credit associated with the house, a process very similar to the transfer of an Infonavit house.

To sell your Infonavit house, the interested party must be a candidate for an Infonavit loan, that is, they must have a current employment relationship and have 116 Infonavit credit points, or have the capital to be able to pay the property cash and request a property appraisal.

In addition, as interested in selling your Infonavit house, you must be up to date with your mortgage loan payments as well as with the payment of taxes and services.

Both must go to the Infonavit offices with the documentation that supports compliance with the requirements. Once Infonavit authorizes the transaction, the procedure must be carried out before a notary under the supervision of Infonavit.

Through the purchase, the original credit associated with the property will be paid off and thus the original owner is free of all debt, in addition to receiving an amount similar to the money invested in the purchase of the property.

If you are looking to transfer your Infonavit house, advertising your property through real estate portals on the internet is the easiest way to find someone interested in acquiring it.

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