People in India buy and sell their homes all the times for various professional or personal reasons. You may want to sell your house because you are shifting in new city for new job. Your neighbor might be selling their house as they are expanding their family and need more space to accommodate the new members. Someone else might be selling their house to relocate themselves near their family or some might sell their property to raise funds for their personal/professional reason.
Buying and selling property in India is always quite easy. But what if your property is kept as a mortgage to a bank or NBFC and you want to sell it for any of the above mentioned reasons? Well, you can do that too without any hassle, if you know the procedure.
Step 1: Get in touch with your lender
When you decide to sell your mortgaged property, contact your bank or NBFC, from where you got your mortgage loan against your property. Apply for a ‘loan outstanding letter’ to know exactly how much amount you are remaining to pay off. Once you know your remaining loan amount, you can plan your second step.
Step 2: Pay back the mortgage loan
Once you know how much amount you have remaining to pay back, you can decide to settle the loan and sell your house. Here you have two options:
You can pay back the remaining loan amount by yourself using your savings or other sources and settle the loan. Then start looking for a buyer and sell the property. But this option won’t be suitable for many as you have to pay the whole loan remaining loan amount at once.
You find a buyer first and make an agreement with him/her. Let the buyer pay your outstanding loan amount to the bank/NBFC. You will get the remaining amount from the buyer (minus the outstanding loan amount from the current price of your house). The bank will settle the loan once it’s paid in full by your buyer. It will release the original documents of your property to you. Then you can shift the property legally to the buyer using the documents released by the bank.
Step 3: Get the correct amount from the buyer
Once your mortgage loan is paid in full, do not forget to get the remaining amount from the buyer. After you transfer your property legally to the buyer and get hands on your remaining funds, use the funds as you wish.