Is it Possible to Pull Out from A Joint Home Loan?
Mar 28, 2019 Home Loan
Buying a house with a joint loan not only extends your home loan limit but also helps you get a loan quickly. Banks and financial institutions love the idea of a joint home loan and are always willing to give out one.
But sometimes your financial situation can change, or due to circumstances, one of them wants to pull out of the joint home loan? What can you do in such circumstances?
We discuss everything below:
But sometimes your financial situation can change, or due to circumstances, one of them wants to pull out of the joint home loan? What can you do in such circumstances?
We discuss everything below:
Before you approach the bank
The banks give you home loan thinking that they will receive the loan amount with interest on time. If there are two borrowers for the home loan, it is expected that they are going to furnish the home loan properly.
Regardless of how many people are the co- borrowers of the home loan, you have to pay every single penny to the bank that you have a loan. And bank generally takes the co- borrowers as a single entity.
When you decide that one of you want to pull out from the loan, make sure you have a solid reason for the same. It is always a red flag to the bank if any of the co- borrowers fails to make the payment. Have your documents ready for the reason to pull out from the loan, ready. Whether you both are parting ways or one of you does not have a job anymore, the reason for the same shall be mentioned clearly with proof to furnish at the demand.
Regardless of how many people are the co- borrowers of the home loan, you have to pay every single penny to the bank that you have a loan. And bank generally takes the co- borrowers as a single entity.
When you decide that one of you want to pull out from the loan, make sure you have a solid reason for the same. It is always a red flag to the bank if any of the co- borrowers fails to make the payment. Have your documents ready for the reason to pull out from the loan, ready. Whether you both are parting ways or one of you does not have a job anymore, the reason for the same shall be mentioned clearly with proof to furnish at the demand.
Talking with the bank
Talking on the phone will not do you any good. You must personally visit the bank and speak to them about the same. It is better to keep your issues with each other out of the bank and present them before the bank manager. Unless the bank is sure that the person who has undertaken the charge to furnish the home loan is in the capable position, they will be unwilling to let you pull out of the home loan. The bank needs to be sure that whoever is paying the loan is not going to default on their payments while keeping their monthly financial capability intact.
What to do if a bank refuses to let either of you pull out form the home loan?
In such a case, wither you can approach another bank and apply for a new home loan for your property while explaining them the entire situation. You can also try to transfer your home loan to another bank. Though, in any case, the bank will treat your home loan as a new application, and you will have to go through the entire process of a home loan application from scratch.
One can also try to offload the property by selling it and paying back the bank everything they owned and start a new loan for another property that fits the budget.
One can also try to offload the property by selling it and paying back the bank everything they owned and start a new loan for another property that fits the budget.
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