Last week we talked about a phenomenon that is spreading in the United States . The do-it-yourself mortgage, one could call it, because it is an agreement, similar to a mortgage, which is realized directly between the owner and the buyer, without going through the bank . We of idealist have asked sabrina chibbaro, notary of Milan , if in Italy this type of agreement would be possible
In the United States is called "land contract" or "contract for deed", the owner has a payment program with the buyer , who can go to live immediately in the house in question. These payments include an interest rate set by both parties, just like a bank loan. When the payment is completed, the house actually passes the property
The system is growing in the US, due to the mortgage crisis and the difficulty for many people to receive a loan from the bank
The notary sabrina chibbaro, in addition to being part of the IT committee of the national council of notaries, is an expert in the US legal system . We asked her to explain the difference between Italy and the United States
Question. Does this form of buying and selling exist in Italy?
Answer: absolutely yes. It is called sale with reservation of the property. It is an agreement between the parties, in which the buyer immediately enjoys the availability of the property, but the transfer of ownership takes place only when the payment of all installments has been completed.
Q. Do we have any concrete cases in which it was exercised?
A. Yes, the typical case is that of public housing bought to redemption, in which the future owner already lives in the house that will be his when he has paid all the installments
D. And in the private sphere?
R. It is a possibility that is practically never traveled
Q. Why in these times when it is difficult for many to light a mortgage, does this practice not spread in Italy?
R. Basically because those who want to sell need money! it is difficult to accept to receive an installment for a long time. Most owners who sell in Italy, do it to buy another house and therefore can not accept this form of transaction. Moreover, in many cases, the seller, with the proceeds of the transaction, extinguishes the residual loan. Another reason why we can not "settle" the installments
Q. If banks' credit tightening should last, could things change?
R. I see it difficult, even for risks. Let's imagine a specific case: the seller makes a bad use of the installments and finds himself in economic problems: being still the legitimate owner of the house, he could let the buyer fall on his own problems
D. In what way?
A. If a mortgage was pending on the cash desk, for example, it would be foreclosed and auctioned
Q. And why is it a growing phenomenon in the United States?
R. Because society is different. With us, the house is the home, it is not an investment, for most people. In the US there is more mobility and the home is a financial asset to focus on their savings. For some sellers there is no other choice, better to settle for a ransom installment than to get stuck