Using the Cessie Scheme to Buy a House: What You Need to Know?

The Cessie scheme is an attractive option for many people looking to buy a house. In this article, we will discuss how the Cessie scheme can be used to buy a house, as well as the advantages and disadvantages of this approach.

What is the Cessie Scheme?

For those unfamiliar with this term, the Cessie scheme is an agreement in which the creditor transfers the right to collect debts to another party, known as the Cessie recipient.

In terms of buying a house, you will be purchasing a house where the mortgage payments have already been made for a while but have stalled along the way, a scheme similar to an over-credit.

You only need to pay the remaining debt from the previous homeowner to the bank. Afterward, you will receive a Cessie certificate to finalize other matters with the previous owner.

The Cessie Scheme for Buying a House: How Does It Work?

Basically, the Cessie scheme can be an option for buying a house, including subsidized houses at a lower price. The agreement with the bank will be completed faster once you settle the remaining debt from the previous homeowner.

You only need to pay off the remaining debt of the previous homeowner’s mortgage to the bank. After that, you will receive a Cessie certificate along with the property certificate. However, the property certificate you receive will still be in the name of the previous owner.

You need to negotiate with the previous owner to move into the house and change the name on the certificate to your own. This negotiation is outside the bank’s involvement, which makes it more flexible.

Advantages of Using the Cessie Scheme for Buying a House

Faster Process with the Bank

One of the main benefits of using the Cessie scheme is that you can resolve matters with the bank faster. If you qualify as a Cessie recipient, you can immediately obtain the certificate and other supporting documents to negotiate with the previous owner.

An Alternative for Those Who Don’t Qualify for a Bank Loan

For those with a poor credit history or who do not qualify for traditional bank loans, the Cessie scheme can be an attractive alternative. Since the bank’s involvement is minimal in this agreement, the negotiation process will be more flexible.

Potential for Lower Property Prices

Houses sold under the Cessie scheme tend to be priced lower. Especially if you have strong negotiation skills, you may be able to buy a house for less than the market price from the previous owner.

Disadvantages of Using the Cessie Scheme for Buying a House

Potential Conflicts with the Previous Owner

The previous owner has already spent a significant amount of money trying to pay off the house they bought, even though they ultimately failed. Therefore, there will likely be a negotiation process that is not easy, as the previous owner may not want to incur a loss.

If you are not familiar with this type of negotiation process, conflicts are likely to arise. You will need to prepare a strategy to ensure that the process does not take too much time, especially since you have already paid money to the bank.

Risk of Buying Property in Less-than-Ideal Condition

As a homebuyer, you need to conduct a more thorough investigation of the property you are considering purchasing under the Cessie scheme. Some properties may have legal issues or be in poor condition, and you must ensure that you do not take on unnecessary risks.

Security and Legal Certainty

The Cessie scheme involves an agreement without the bank’s intervention, so security and legal certainty need to be addressed more carefully. It is important to consult with professionals, such as lawyers or notaries, to ensure that all legal aspects are properly handled and that your rights and obligations as a homebuyer are protected.

Conclusion

At first glance, the Cessie scheme seems tempting because with just a relatively small amount of money, you can obtain a property certificate. However, there is a long process behind it, with no bank involvement.

For those with limited budgets, the government has prepared a better and much safer solution. This solution is subsidized housing, such as those managed by Ingria Group. Find affordable housing with a much easier purchase process through Ingria Group!