Can I sell mortgaged property?

Once the terms and conditions are negotiated and finalized, the prospective seller needs to obtain no objection certificate from the bank stating that the bank has no objection in the sale of the mortgaged property and the housing loan shall be transferred in the name of the prospective buyer once the transaction is …

How long does porting a mortgage take?

Porting a mortgage usually takes at least a month from applying. Once approved, the mortgage offer is valid for around 90 days with most lenders – enough time for you to complete on your new house.

What happens when porting a mortgage?

Although the process is often simplistically described as taking your mortgage with you when you move, porting actually means repaying your existing mortgage on the sale of your current property, and resuming the mortgage on the same terms with your new property.

Is there a mortgage penalty when you sell your house?

Your mortgage type affects your penalty In most cases, your lender will charge you three months’ worth of interest. Some no-frills mortgages with very low interest rates, however, may charge bigger penalties, sometimes up to three per cent of the principal or six months of interest, McLister says.

Is it possible to sell a property that is mortgaged?

Till such time that the loan dues are cleared by the person availing the loan, the property remains mortgaged. While the property is mortgaged, one may want to sell it. Since all the original property documents are in the custody of the lending institution until the loan is closed, one can sell a mortgaged property with the process stated below.

How can you sell mortgaged property-iPleaders?

According to the Transfer of Property Act, 1882, there are six types of mortgages namely: According to section 58 (b), in a simple mortgage, the mortgagor assures mortgagee that he shall repay the loan amount and in the event of default, he shall bind himself personally to sell the mortgaged property and thereby repay the loan amount.

What happens when you sell a mortgage note?

Some sellers — particularly those with commercial property — see this kind of deal as a long-term play: they can depreciate the property over time for tax benefits, get reliable monthly income and have an asset to use as collateral if things go sour. As time progresses, private mortgage holders or buyers may reconsider holding a mortgage note.

Can a seller offer a mortgage to a buyer?

In these instances, the seller may own their property outright and can offer the buyer their own mortgage deal. Although terms of the deal are similar, the buyer sends payments to the seller and not to the bank.

Till such time that the loan dues are cleared by the person availing the loan, the property remains mortgaged. While the property is mortgaged, one may want to sell it. Since all the original property documents are in the custody of the lending institution until the loan is closed, one can sell a mortgaged property with the process stated below.

Do you have to give consent to sell your mortgage?

Consumer consent is not required when lenders sell mortgages. It might seem alarming because a mortgage is something very personal to a consumer, a symbol of your home ownership. But banks and other financial institutions view your mortgage differently.

Can a home be sold without a partial release of mortgage?

A homeowner who attempts to sell mortgaged property without the lender’s permission invites the risk of triggering the loan’s “due on sale” clause and having to pay off the full mortgage. Thus, to transfer title to a part of a property, the owner must first receive a partial release of mortgage.

What to expect when your mortgage is sold?

After all that research and deliberation, your mortgage has been sold. It can be daunting and a little unnerving. Know what to expect. When you get a mortgage, your loan servicer may end up being a different company than the lender that approved your mortgage application.