I want to buy a house which is under another housing loan – What should I do ?

POSTED BY johnpal ON October 22, 2013 7:55 pm COMMENTS (3)

I want to buy a house @ 60 lacks –  which is under housing loan.  Outstanding amount on the loan is around 35 lacks. I am planning to go for home loan of around 30 lacks.

My question is what is the safe way to buy this house.

I mean – should i pay 30 lacks as advance such that seller can clear his outstanding loan and get the original documents. and once my loan is sanctioned get the registration ?  But this involves huge money involvement with an agreement only ..

Is there any other option?

I heard about transferring the loan from seller to buyer…. i also heard that it is not a safe way to go… .

Is there any other option like i can process my home loan with true copies of the document and once i got the loan sanctioned, loan sanctioned letter can be showed to the sellers bank and get the originals ?

I mean at the time of registration 4 of us (me,seller, my bank representative with my loan DD and sellers bank representative with the original documents ) can meet at registration day to exchange the DD/document/outstanding cash ?

your inputs will help

3 replies on this article “I want to buy a house which is under another housing loan – What should I do ?”

  1. ashalanshu says:

    Dear Johnpal, it’s advisable to go with Axis at this point to close the deal comfortably. Later on if you feel SBI or LIC HFC is god, you may switch over at that point as instead of current 4 parties (seller, Axis bank, You and your bank), only 3 ‘ll be involved (You, Axis and your preferred bank).

    Thanks

    Ashal

  2. johnpal says:

    @Ashal,
    Thanks for your response. Existing home loan is with Axis Bank whereas i want to go for SBI/LIC.

    -John

  3. ashalanshu says:

    Dear Johnpal, it’s advisable to contact the existing home loan provider to switch the loan from original lender to your name. This ‘ll be an easy case for you to handle.

    Thanks

    Ashal

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