Let me be precise in answering your query: Can we sell a house which is on loan? If you are willing to sell a property with an outstanding loan, you will need to get the NOC or No Objection Certificate from the lender. But anyway you have to pay the pending debt before selling out the property.
Can I Sell a House Which is on Loan?
Yes, you can sell a house with an outstanding loan. But you have to pay the outstanding amount and obtain an NOC from the lender. Make sure the bank is notified about your intent to sell the property or initiation of the process. The bank will then inform you about the pending amount thereby providing the necessary documents regarding the ownership of the property submitted as collateral to get the loan.
This is how to sell a home with an outstanding loan
How to Transfer a Home Loan From Seller to Buyer?
To transfer a home loan from the seller to the buyer, both parties need to contact the bank or lender and discuss about the process. The process mainly involves the seller providing a letter of foreclosure to the buyer. The buyer next fills out a new application and pays the applicable charges to proceed with the property transfer
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How to know the outstanding loan amount?
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Hey,
There are many questions or doubts you might have while taking a home loan. Home loan is a massive financial commitment. You need to think about the interest rate, loan amount, loan period and more. In case you are wondering what happens to home loan when you sell house. Read my answer below.
What happens to your mortgage when you sell your house ?
In case you want to sell your house before the home loan has been repaid. You will need consent or permission from the lender. You cannot sell your house until and unless the payoff amount is paid. You will need to pay the remaining loan amount and other charges for you to sell your home. Your mortgage is still there when you want to sell the house.
What happens to home loan when you sell house ?
When you sell the house, you will be required to pay the lender. You will have to ask the lender for a “loan outstanding letter”. The outstanding loan amount will be mentioned. The buyer will have to pay off this amount. The buyer will also have to ask for a loan closure document.
Once all the dues are paid, you will get No Objection certificate. Upon receiving that the seller authorised to execute a sale transaction and transfer the property to the buyer.
I hope your doubts about what happens to home loan when you sell house have been answered.
Get peace of mind by knowing all the details about your loan using NoBroker Home Loan Services. Buy or rent the house of your dreams! Check out the real estate platform NoBroker to see properties in your area. Read more : What are the requirements for a home loan?
What questions to ask when applying for a home loan? How to get a home loan when self employed?
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Authors Of The Question
What Happens to Home Loan when You Sell House?
Shitij
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2022-01-11T07:37:25+00:00 2024-07-09T09:03:10+00:00Comment
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