How to close home loan when selling property?

[shushansh]

I have a property with a home loan and I want to sell it. However, for selling the property original documents are needed, which the bank holds, and will only return back once the loan is paid off.
So, how do I go about selling it? Right now, I don't have the amount to close the loan, and the buyer will only pay once the registry is done.

Anyone has had any experience with this?

 

[Tejo]

I have a property with a home loan and I want to sell it. However, for selling the property original documents are needed, which the bank holds, and will only return back once the loan is paid off.
So, how do I go about selling it? Right now, I don't have the amount to close the loan, and the buyer will only pay once the registry is done.

Anyone has had any experience with this?

Taken in advance, WHT you needed

 

[Akash369]

I have a property with a home loan and I want to sell it. However, for selling the property original documents are needed, which the bank holds, and will only return back once the loan is paid off.
So, how do I go about selling it? Right now, I don't have the amount to close the loan, and the buyer will only pay once the registry is done.

Anyone has had any experience with this?

Banks transfer the HL to the buyer and close your loan. This is called BT. You will get the difference based on your selling price. You dont need to close the loan bank itself transfer the loan to the buyer.

 

[Vasuki]

Banks transfer the HL to the buyer and close your loan. This is called BT. You will get the difference based on your selling price. You dont need to close the loan bank itself transfer the loan to the buyer.

Even one can take advance
Pay to bank & close loan & transfer the paper

But if other person is taking loan too for purchase
U can transfer the loan + the house

 

[InquisitiveWhiz]

I have a property with a home loan and I want to sell it. However, for selling the property original documents are needed, which the bank holds, and will only return back once the loan is paid off.
So, how do I go about selling it? Right now, I don't have the amount to close the loan, and the buyer will only pay once the registry is done.

Anyone has had any experience with this?

Done this 6 months back. I had sold my property on home loan to seller who also took home loan from another bank. Hence could not do loan transfer. Below is the process I followed :
1.You must be having soft copies of the home docs. Give them to buyer for "searching process".
2. Intimate your bank regarding your intention to sell.
3. If possible , get a registered copy of the deed from the municipality.
4. Get LOD (list of documents ) and foreclosure letter from bank and give to buyer.
5. Ask the buyer bank to contact with your bank and sort out the process within themselves.

It's a very easy and normal procedure if the buyer is agreeing to the process which was in my case. DM me if you need minute details or any help.

Also mark this as solution if you feel so. 😀😛

 

[sk767sk767 is verified member.]

Banks transfer the HL to the buyer and close your loan. This is called BT. You will get the difference based on your selling price. You dont need to close the loan bank itself transfer the loan to the buyer.

+1 to this. Closing the loan will require you to pay closing charges as per your bank. The bank would most likely charge you a foreclosure charges. Around 2-3% of remaining amount.