How to Sell Property Under Loan | Tips to Sell Property With an Outstanding Loan
How to Sell Property Under Loan : There are many ways to sell your property under loan.
Most of the peoples wants to invest their money in housing property. And they wants to the more money with the sell property under loan. They also end up taking hone loans to finance this purchase. However, in times of financial constraints, this extra home with an outstanding loan is the first option to be knock off the investment portfolio. Given the size of the loan, most often the seller is under duress as how to go about selling such a property. Following are some options that can be consider.
Tips to Sell Property With an Outstanding Loan
Buyer Pays From His Own Savings
The process is simple as there is no bank involve by way of loan from the buyers end. The seller can request the bank to provide the outstanding loan letter. Thus, instead of paying to the seller, down payment can be directly made to the sellers loan account.
In this process, the loan gets paid and with the liability clear, bank release the property documents. Thereafter, the seller can transfer the property in the name of the buyer. The remaining amount, if any, can be settle directly between the buyers and the sellers.
Buyer Take Loan From Sellers Lender
Moreover, buyer and seller, bank enters into a tripartite account. This is easier for all the parties involve as the number of checks required are minimal. The only background check required is that of the buyer as to check his eligibility for a home loan.
From the loan sanction to the buyer, the amount require to settle the loan of the seller is taken care of. The remaining amount will be hand over the seller.
Buyer Takes Loan From a Different Lender
However, here too, the seller requests to bank to provide a loan outstanding letter along with the list of property related documents maintained with the bank. Once all the papers are provided, buyer approaches his bank and pays the required fees.
Thereafter, if the applicants is eligible, the buyer’s bank issues a cheque in favour of sellers bank bearing the outstanding loan amount. When the loan amount is fully settle, bank releases property documents, which is then hand over to buyer’s bank. It is only then that the remaining loan amount is release.
Documents to be Maintain
- Mother Dead
- Sale Deed
- Documents Pertaining to Home Loan Sanctioned
- Housing Society Share Certificate
- Society NOC
- Encumbrance Certificate
- Property Tax Receipts