How To Sell Your Flat When Home Loan Is Outstanding?

Home loans are a popular form of financing in India as they provide an accessible and affordable way for individuals to own a property. Individuals take home loans to purchase a property or to construct a house.

Home loans are a popular form of financing as they allow individuals to own a property without having to pay the entire cost upfront. Instead, they can borrow money from a lender and pay it back over a period of time through equated monthly installments (EMIs).

However, there are situations when the person wants to sell the property and because of the ongoing loan, the person has to complete certain formalities, so that he/she can sell the property.

Can You Sell The House Even When Your Home Loan Is Outstanding?

Yes, you can sell the property with the prior consent of the financing bank/lender. On the other hand, if the buyer of the property wants to take a loan to buy the property, the process is much easier if he/she approaches the same bank. In these cases, the bank does not need to release the property papers to another bank before getting the payment.

If the buyer wants to make a payment outright, he/she can make it to the bank directly. The property papers will be released only after the bank has recovered the entire loan amount and other dues.

You need to check the outstanding balance on your home loan and ensure that you have the funds to pay it off. If you do not have enough funds to pay off the loan, you may need to negotiate with your lender or look for other options such as a personal loan to cover the outstanding balance.

You will need to obtain a no-objection certificate (NOC) from your lender, which states that they have no objection to you selling the property. This is typically required by the buyer’s lender or bank to ensure that there are no encumbrances on the property.

It is advisable to consult with a real estate expert to ensure that you have a clear understanding of the legal and financial implications of selling a property with an outstanding home loan.

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