how the lone amount is calculated by icici home finance company on resale property,?

Question

on the basis of agreement value or on the basis of market value

Answer 1

Finance amount is based on the lower of the two! If the market value comes in less, the borrower will have to come up out of pocket the difference.

Why would anyone purchase a property for more than what its worth...unless they just ultimately LOVE the house and value or price is not an issue.

Answer 2

I bought a brick mansion from an owner that simply gave the keys to the bank to avoid foreclosure (deed in lieu of foreclosure). This option is listed below since you don't have equity to pay a Realtor nor sell the home yourself, unless the buyer is willing to pay the owed difference at closing (short sale). I have found buyers that will if the home is otherwise aggressively priced. In any case, unless you can come up with enough money to pay back the delinquent amount, or if FHA, have HUD help you workout a payment plan, the house will be sold.

Answer 3

For the purchase of property, the maximum loan amount is based on percentage of purchase price e.g. in residential real estate, the max. loan would be 80% of the purchase price.

For other types transactions (ege refinance), the max. loan amount is based on % of the appraised value eg.for a HELOC, the max loan amount would be up to 90% of the appraised value.