View Single Post
Old September 13 2009, 08:02 PM   #4
nabishek is offline nabishek
Senior Member
 
Join Date: Mar 2008
Posts: 671
Likes Received: 201
Likes Given: 0
Default

Quote:
Originally Posted by yeskrish View Post
Thanks nabhishek.

that is useful.

rReg the flat not in mortgage or in lien, i am not clear.

Most of these 2nd hand owners have their documents with banks and they are on mortgage. I thought that was actually better beacuse original docs are with banks and less tamper proff - relatively.

when you say point above i am just curious to know what did you have in mind. Thanks.
I meant that you have to take extra care and put additional effort to ascertain the obligations towards the motgage and implications of lien if any.

The seller maybe finding hard to pay the EMI's and may want to sell the flat and repay the loan amount to the bank.Its not simple, before going ahead you have to check with the bank whether its possible.

Till the entire loan repayment is complete, the real owner of the house is the bank.The seller is just a "benami" of the bank in true sense.

To give you an idea, If the seller had defaulted for more than 6 months or so, the property becomes a toxic asset and would be classified as NPA.The bank reserves right to confisciate the property and auction it after a stipulated timeframe.

What if a property was already auctioned and you end up paying the seller hoping that person would repay the bank, get back the property and register on your name.

So, never pay the seller of a mortgaged property directly.Instead, deal along with the concerned bank to arrive at an understanding on how the loan can be transferred or paid back to gain ownership of the property.

Also, any payments like foreclosure charges, dues etc should be clarified before hand and ensured its bourne by the seller.

Its better to move the loan to another bank.The documents will be scrutinized again and any discrepancy if any, will come to light.