I’ve a house mortgage on my home which I need to promote. What is the method?

I’ve a house mortgage on my home which I need to promote to an individual who additionally needs to take a house mortgage. What is the process to be adopted? Sushma

Answer: In case you need to promote the property on which you’ve got a operating dwelling mortgage, you will have your lender’s consent for a similar. This consent is often supplied within the type of a letter which is able to sometimes present the quantity, on fee of which the excellent mortgage shall be totally paid off. This quantity contains the prepayment cost, if any, chargeable by your financial institution and would additionally checklist the paperwork held by the lender which shall be launched on fee of the said quantity. The quantity talked about within the letter is often calculated as on a future date, to permit the customer time to rearrange the funds. After the fee of all dues, the financial institution will return your authentic paperwork and points you a mortgage closure letter indicating that there isn’t a excellent quantity to be paid. Please ensure you get the no dues certificates to obviate any points sooner or later.

If the customer can be searching for a house mortgage to purchase your property it’s advisable to method the identical financial institution in order that the method is more likely to be simpler than in any other case. However, the customer should undergo the processing of dwelling mortgage for him.

In case the customer is taking dwelling mortgage from different lender, you may request, your banker to present you an enterprise addressed to the lender of the customer that they are going to hand over the paperwork to lender of the customer on fee of the excellent quantity. In such a state of affairs the customer’s lender will make fee on to your lender in trade of the property paperwork. The purchaser could make fee of the stability sum on receipt of the unique paperwork from the financial institution. The course of adopted by all of the lenders might not be uniform and will differ from lender to lender.

Balwant Jain is a tax and funding professional and might be reached at [email protected]

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