Am planning to buy a property worth RS 20 Lacs through loan.?

Question

The propertyalready has loan of RS 15 lakhs exists on it.
And owner of the property has repaid about 2 lakhs towards the loan and remaining loan exists.
Owner of the property is telling me to transfer the loan directly to my name and giving remaining amount in hot cash.
Can i transfer the Existing loan to my name, or make the owner to repay the full amount towards loan then i buy the property.
Which is better?.

Answer 1

Dear ....

I am a Real Estate consultant from Pune

If the Property Already has loan on the title. ( Which bank) , The Title is existing with that bank.

Are u Applying for a Loan

Then your bank will give the balance amount Directly to the Sellers bank.

2 Lacs paid till date Out of that how much principal is paid , Ask your seller to give you a Total out Standing statement from his Bank , which will make your picture Clear. In the Initial Years maximum repayment is done towards interest only, so chances of principal coming down is low.

No banks will give you loan in your name, generally Home Loans are given Directly to the Seller if no Dues are there on his property, If any Banks have got any loan to that property they will first clear the amount and then the balance is given to the Owner. Like for eg If he is selling u the property at 20 lacs and 14 lacs is out standing to bank according to Outstanding statement by the Sellers bank . balance of Rs 6 lacs will be given to the Seller after he clear the Dues from his bank and hands over all the Original Documents which are kept as a mortgage with the Sellers bank. After Receiving the Original property Docs your bank will Give the balance amount to you as bankers cheque / DD in owners name only.

You are talking about existing loan transfer in your name : in Bank terms they close one account and open a new account for you , If you have Got your financial Docs in Order and bank is ready to give you loan then u can do the take over , Talk to that bank about this offer of yours. Approach some local bank , or Big MNC brands the loan office / sales guy will guide you better.

Transfer to your name . No bank will give you loan with out security of property which the Title is already lying with sellers bank. How can u take loan on that, If you have some other property or some asset to mortgage then you can work that out.

Please Consult a Lawyer in your location, Show him all property details and take his suggestion before proceeding in this deal

Thanks

Shaji Thomas
[e-mail]

Answer 2

Unless the bank agrees for a transfer of the loan to your name, the subject loan of the present owner cannot be transferred. If the bank does not agree for the same it is better to get the loan cleared by the present owner and then get the property registered in your name. If the bank agrees to continue the loan in your name it will be good and if you need the same continue it. Getting a housing loan has got many advantages from tax angle.