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21 August 2011

Can I Sell my Flat even with Continuing Home loan?


Many people buy property or houses and then in some cases if this doesn’t work out they are at a fix. They are tied down to the home loan and have to complete the whole home loan tenure and then sell the property. Or they have to prepay the whole left over home loan amount and face the penalty charges as prepayment fees.
There is an option for any borrower to sell the house even when the home loan is going on. As they are repaying the EMIs every month they can discuss these matters with the representatives of the housing finance company and get to consider various options for the sale of their flat. Since the home title documents are with the lending bank as they have offered the home loan the bank need not worry about the clearance of the loan. If the customer wishes to sell the property they can get a receipt of their outstanding amount of home loan and the payment amount of the loan till date on paper. With this slip the borrower can go about and search for a new buyer for their house.
There is an advantage for the new buyer if they are buying the flat on home loan as they can also continue the same home loan with the same housing finance company or bank. It also becomes easier for the lending bank as they already have all the documents and only transfer of the name is required. If the new purchaser wishes to purchase the flat out right paying cash amount or cheque then they can ask for clearance of the home loan and pay the amount directly to the home loan lending bank. The bank in turn will clear off the home loan and allow the new owner to pay the remaining amount.
In case the new owner does not wish to get involved with the home loan procedures then they can give a part payment of the flat with which the home loan can be cleared. The previous owner of the flat can pay the amount to the bank and clear the home loan and convert the property in the name of the new owner. In case the bank wishes to offer a purchaser they can verify all the documents and make the new deal of the flat with the owner and home loan borrower and then arrange for the payments. The new owner on paying the sum to the bank can purchase the flat and then the bank in turn will hand over the amount the previous owner has already paid over the years as EMI and clear off the loan.
So there is a way out when you are stuck up with your home loan and wish to sell your property.

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