I can’t quite wrap my head around this so anything will be appreciated.
So if a company ‘buys’ a property for me with the expectation of me paying it back, when I switch mortgage companies, does the new company pay off the debt to the old company? How does it transfer over?
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The first bank didn’t buy the house. You did. They just lent you the money, with a clause that if you seen the house you have to pay them back the balance immediately.
Then another bank offers you a better deal, lower interest rates or whatever.
You take a loan from the second bank. But they want the condition about you not seeing the house without paying them off. So the lawyers do a dance where you have to use the new loan money to pay off the first bank, and the rule about having to pay off the loan if you sell moves to the new bank.
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