What If You Sell Your House before Ending Your Present Loan?
Jun 12, 2018 Home Loan
A lot of time buyers tend to make a wrong purchasing decision. After buying a home they want to sell it off but they get stuck thinking about the home loan outstanding amount to pay. So if you are also planning to sell your mortgaged property, then here is the list of things that you need to do to sell the property.
Read through which documents you need to present if you are selling your mortgaged property.
Read through which documents you need to present if you are selling your mortgaged property.
- Sale Deed
- NOC from society
- Documents related to sanctioned home loan
- Property tax receipts if any
- Encumbrance certificate
- Mother deed
- Housing society share certificate
Here are certain ways through which you can sell your property without paying off your home loan.
- If the present buyer takes the loan from the same lender, then the three parties- buyer, seller and lender get into the tripartite agreement. The lender will consider buyer’s loan eligibility if approved the amount required to settle the seller’s loan is taken care of and the remaining amount is handed over to the seller. However, the processing fee is incurred by the buyer.
- If the buyer has a pre-approved loan from any other lender, the seller needs to request bank for the outstanding certificate as well as the list of property documents maintained by the bank. If the loan gets approved, the buyer’s bank can issue the outstanding loan amount for the seller’s bank. As the loan amount gets settled, the seller’s lender will hand over the property document to the buyer’s bank. The remaining loan amount gets disbursed as the documents of the property are received.
- If the buyer is paying for his or her own savings then the seller can ask his lender to give loan outstanding certificate. Then the buyer can pay the down payment directly to the loan account of the seller. As the amount gets cleared, the bank will hand over the documents. And once the documents are received, the seller is required to transfer the property in the name of the buyer. Then the rest of the amount is to be settled between the buyer and the seller.
Here is the checklist for the buyers if they are purchasing a property with an outstanding loan
- The buyer needs to check the terms and condition on the basis of which the seller had taken the loan if the buyer is opting for the same lender. Usually, new loans come with lower rates and more benefits.
- The interest rates may vary as the marginal cost of funds-based lending are linked with the current market state whereas the fixed interest rates offered by the bank are on the comparatively higher side.
- The buyer should check if the loan was part of any prevalent scheme and if the same benefit can be passed to you or not.
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