Can I sell the property, even when the home loan is outstanding?



I like to know the link or site where i can find the details for the above question. My bank is SBI. it will be great the details are specific to SBI.

Can I sell the property, even when the home loan is outstanding?
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6 Replies to “Can I sell the property, even when the home loan is outstanding?”


  1. You can very well sell it.
    The procedure is as follows:

    You can identify a buyer and enter in to agreement for sale with details of outstanding Mortgage in SBI and receive a token advance. You have to get a letter from SBI the quantum of outstanding as on date.

    The purchaser if going in for Housing loan elsewhere, he can process on this basis. The lender of your purchaser will ask for a letter from SBI for confirmation of outstanding and release of mortgage if the amount is remitted by DD direct to SBI.

    Then the lender bank of purchaser will collect the original documents pertaining to the property after making the outstanding due to SBI.

    The new lending bank will issue the balance due in sale consideration to you on the date of registration of Transfer deed.


  2. When loan is outstanding how can you have the original documents? All the documents will be with the bankers only. Buyers will definitely insist for original documents and verify encumbrances. So you can not sell it directly.
    Transfer of loan is possible provided both the bankers and the seller agree.


  3. Most homes that are sold in the United States have an outstanding mortgage loan balance. During the process of the transaction your closing agent will send a request to your lender asking for the payoff amount. The amount you receive from the sale of the property must equal or exceed the mortgage loan balance you currently owe or someone would have to come up with the difference.

    From the funds placed in the escrow or closing agent’s account for this transaction your current lender would be paid off and they would provide you with a release of responsibility for the mortgage.

    Any funds left over after your lender is paid all fees and other charges are paid, any additional funds remaining would go to you or whomever you would want the excess funds to go.

    Based on this the title company would then be able to offer a clear title of any liens to the new owners that you sold the property to.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”


  4. yes you can sell the property, there are two ways,
    1. the o/s amount of loan will be transferd to the party who is purchasing it, if he wants,
    2. if he does not want to take over your loan, you simply make the full payment and make your property free, the bank may charge you a certain percentage on the o/s loan amount, the % varies from bank to bank normally it is 2%.

    Hope my answer will help you.






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