Is there any loan facility for a mortgaged house?
Posted on: 21/Apr/2014 5:26:03 PM
A mortgaged house or flat can certainly be sold. There are no legal issues for both the buyer & the seller. There is a procedure to be followed for this.
For
example, if a person wants to buy a mortgaged house or flat out of his
own money, some procedure has to be followed.
- The seller will have to approach the mortgaged bank and inform about the decision to sell. He has to obtain the financial statement regarding the loan, the balance, the principal, etc. He has also to obtain an authorised list of documents available with the bank.
- He has to obtain a ’No objection’ certificate from the bank regarding the release of the house registration document once the loan is paid back.
- The seller will have to hand over all the bank correspondence and the copy of the sales deed and copies of all documents related to the flat/house to the buyer.
- The buyer will have to show these documents to his/her lawyer and then pay an advance to the seller. After this, the buyer & the seller will make the sales agreement document and sign it in the registration office.
- The seller will pay the balance due to the bank after the receipt of money from the buyer. He has to obtain a letter from the bank that the account is closed.
- The seller has to hand over all the bank documents to the buyer and get a receipt. The buyer will have to give the cash document to the seller and then register in the registrar’s office.
Mortgaged
house loan
You do
not have ready money on hand. You need to obtain a loan from the bank for a
buying a mortgaged house/flat. Even for this situation, some procedures can be
followed:
The
first 3 steps described above should be carried out by the seller. Let us what
the buyer needs to do:
- ThThe buyer will have to hand over all the documents to the bank giving the loan. He has to submit an address proof with photo, identity proof with photo, income proof, and the inspection report of the bank. The duly filled loan application should be submitted.
- The bank will issue a loan release acceptance letter after the verifications. There may not be an undue delay as anther bank has already carried out all the checks.
- The bank will now directly pay the bank where the house/flat had been mortgaged.
- The mortgaged bank will now hand over the documents in its possession to the bank releasing the loan.
- The loan advancing bank will now pay the seller the balance amount after the principal & interest. Finally, the buyer can register the purchase in the registrar’s office.
If the
buyer of the mortgaged house/flat takes his loan from the same bank, the
procedure will be even simpler saving considerable time & hardship.
