Hi Sir, I have given advance of 10 lakhs for a flat worth 60 lakhs. And for the remaining I have applied for a home loan in ICICI. This property is registered mortgaged by the seller in Indostar Capital. The seller promised to release the documents from the Indostar when my loan is sanctioned. Now my loan is sanctioned by ICICI bank and they are asking me to have the seller close the loan in Indostar and bring the original documents, but the owner says he is not having enough cash to close the loan. ICICI bank says, they cannot do a Seller Balance transfer as the property is registered mortgaged. Is this true ? Please let me know what options I have as per the law. Thanks Madhava
If the buyer plans to take a home loan to fund the purchase of the mortgaged house, the seller will still be required to settle his home loan first
The lender will always insist on closing the earlier home loan before starting a new one
It is, in fact, better to take a housing loan from the same bank where the seller had mortgaged his property, because the lender will only have to evaluate the new borrower's financial eligibility
hebce better apply for loan from indostar capital
The seller need to get NOC from the Indostar capital and release of mortgage then only your bank shall create a charge on same and release the funds. So it would be advisable to ask seller to.close the loan and then proceed for the purchase.
1)Without NOC of mortgage property bank cannot transfer funds to seller.
2)Seller need to close the loan.
3)It is better apply loan from the same bank as the selle taken, it could be convenient for both parties since the bank already “knows” everything about the property.
1) Ask your seller to get NOC from Indostar that flat is being sell to you and get registered sale deed with sub registrar on your name flat.
2) Kindly mentioned all disbursement cheque details in the sale deed, that how you will be getting payment from ICICI Bank and ask seller to give cheque details in the name of Indostar for balance transfer of loan. So your sale deed will become authentic document once its registered with registrar and both the parties are liable to pay amount.
Approach banking ombusdman with a complaint.
1. First of all Indostar capital shall have to register a mortgage release deed after entering in to a tripartite agreement with the seller and ICICI Bank.
2. Once the registered mortgage is released, ICICI bank can get the eqautable mortgage transferred in its name by paying them the outstanding lying in the loan account of your seller.
The ICICI is right in denying the sanction of loan for the said reason or any other reason.
Because the seller is not cooperating with you in this regard hence the lender bank may take precautionary measures before sanctioning the loan.
The seller bank should discharge the mortgage loan and should initiate steps to cancel the registered mortgage after which the seller can acquire title to the property now being sold.
