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A mortgage agreement is a binding contract between you, the real estate handling your property, partners who have signed the contract with you, and the lending institution that lent you your money. As with most contracts, it isn’t always easy to break it or get out of mortgage without just cause.

To help you get out of a mortgage, here are some great tips:

 

Check If It Is Transferable

Some mortgages can be transferred to the next property that you are looking to buy. While this does not mean that you were able to get out of the mortgage completely, you can at least get out of your old house and into a house that fits your current circumstances better.

 

Check For Special Clauses

Being able to transfer the cost of the mortgage to another property you want to buy is a kind of special clause that you can add to your current agreement. One other special clause that might be included in your contract is the bona-fide sales clause. This clause tells you that you are not allowed to pay off your property while the term is ongoing unless you sell your property. These terms and special clauses can help you get out of a bad mortgage.

 

Talk To Your Partner

If you are using a joint mortgage, tell your partners honestly that you want to get out of the mortgage contract. Discuss with all the parties concerned that you want to get out of your mortgage. An open and honest discussion as to why you want out can help you get in good terms with your partners. Your reason for getting out must be truly valid. You might also want to try to sway the other partners into refinancing the mortgage just to get you out of the contract.

 

Offer To Pay For Some Of The Closing Costs Of Refinancing The Home

Offering to pay for the cost of everything that you needed to have done in order to get out of the mortgage. This may convince your partners into allowing you to get out of your contract.

 

Get The Property Appraised Again

The value of the property that you bought could have lowered or increased over the years. Have it appraised again. This allows you to get a fair buyout price between you and your partners in the mortgage.

 

Sell Your Property

Some mortgage contracts allow you to sell your property so that you can pay off the mortgage and be free of it completely. Be sure to check every item in the terms and conditions to see if they apply to your contract agreement.

 

Just Pay The Penalty

If you really, really want to get out of a bad mortgage really fast, just pay the penalty for ending the contract early. It is not ideal to do this as some penalties are bigger than your 1 year mortgage, but it is also the best way to get out of a mortgage.

Getting out of a mortgage could be really tough but not impossible. There are other ways to get out of a mortgage, but they are not ideal and could affect your credit score in the future. Some of these ways include declaring a default or going into foreclosure. Make these your very last resort. Try to find other ways to get out of a mortgage first before filing for a default.