Can we sell the plot that is on loan?

Can we sell the plot that is on loan?
Answer: In case you want to sell the property on which you have a running home loan, you will need your lender’s consent for the same. This consent is typically provided in the form of a letter which will typically provide the amount, on payment of which the outstanding loan will be fully paid off.

Can we take home loan after plot loan?
Under Section 24 of the Income Tax Act, you are eligible for an annual deduction of Rs.2 lakh. However, to avail that you need to convert the plot loan into a regular home loan. In addition to this, you need also avail interest rate deduction and reduced interest rates for pre-construction.

Can we get 100% plot loan?
Lenders finance around 75%-90% of the property cost and the remaining 10%-25% to be borne by you. Usually, loan amounts upto INR 30 lakh, above INR 30 lakh-75 lakh and above INR 75 lakh are disbursed at upto 90%, 80% and 75% of the property cost, respectively.

What is margin for plot loan?
It is usually 70-90% of the property value, depending on your home loan eligibility and credit score. The remaining amount that you need to pay to purchase the house is called margin money. Also called down payment, you need to pay this margin money upfront while availing a home loan.

Can I get NOC after loan settlement?
Sometimes referred to as a “No Dues Certificate”, an NOC can be obtained from the lender once the loan has been paid off completely.

Can we mortgage land in bank?
Land mortgage loan: This is also known as a loan against the land. Depending on the type of land that you pledge, you can either avail a mortgage loan against agricultural land or a loan against plot. Home mortgage loans: Here, instead of land, you pledge a home and draw from its equity.

Can we transfer land loan to another person?
Yes, it’s possible. If a property owner does not want to repay the loan any further, he/she can transfer the debt to someone else. But that will happen only if the owner sells the property to the new buyer and get the ownership title transferred to the latter.

Is refinancing and modification the same thing?
A loan modification is a change to the original terms of your mortgage loan. Unlike a refinance, a loan modification doesn’t pay off your current mortgage and replace it with a new one. Instead, it directly changes the conditions of your loan.

What happens when loan modification is approved?
Loan modifications are a long-term financial relief option for homeowners who can’t make their mortgage payments. If approved by your lender, this option can help you avoid foreclosure by lowering your interest rate or changing the structure of your overall loan.

What are the benefits of a loan modification?
Lower monthly payments. Perhaps the most obvious benefit of a modified mortgage loan agreement is a lower monthly payment. Lower interest rates. Getting a forbearance or reduction of previous interest. The security of a mortgage you can handle.

Can I sell my plot to bank?
As per law, mortgaged property can not be dealt with without the written consent of the mortgagee. 4. So, you will not be able to sell the independent floors before creating the loan outstanding lying in yoiur loan account for which the plot has been mortgaged with the lending bank.

What happens if loan against property is not paid?
The lender will not directly seize the property but they will wait for three months before declaring the asset as a non-performing asset. They start the process of seizing the property by enforcing Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (SARFAESI).

Is plot loan and land loan the same?
A plot loan, also called a land loan, can only be used to buy a plot of land that has been earmarked for residential property construction. Keep in mind the points given below before you apply for a plot loan: The plot of land should be located within the limits of the municipality or corporation.

Is it necessary to construct a house after taking plot loan?
The only loans available to buy the plot are for “residential plots”, which means that if you take these “plot loans”, you need to also construct a house within 2-3 yrs of buying the plot.

Is preclosure of loan good or bad?
Prepayment of loans will reduce the debt burden of the borrower. If one has idle cash, it is better to prepay a personal loan in the early part of the loan to save on interest. It may not make much sense to prepay towards the end of the tenure, especially if prepayment charges are high.

Can I get loan against a plot of land?
Loan for land purchase is offered by banks when you need financing to buy a plot or a piece of land. This loan is generally provided for residential purposes and in urban areas. However, some banks do let you use the loan amount to purchase land in a rural area.

How can I sell my plot immediately?
Understand the market and the trends: Search for properties similar to yours. Pick the right market climate and season. Understand the demand in your localities. Sell your property online. Click good property photos. Add a video tour. Get repairs and renovations done.

Can I get a loan after a loan modification?
Once the lender grants a mortgage loan modification, Homeowners can decide to sell anytime and qualify for an FHA loan after 12 months. There is a one-year mandatory waiting period after a loan modification to qualify for FHA home loans. Borrowers must have made mortgage payments on time for the past 12 months.

Is it good to do a loan modification?
The primary advantage of a loan modification is to allow you to get back out of default and continue with your mortgage payments. You can get a lower monthly premium, a better interest rate, and more time to repay. If you are facing default, a loan modification may be your best option for staying afloat.

How many times can you do a modification?
There is no legal limit on how many modification requests you can make to your lender. The rules will vary from lender to lender and on a case-by-case basis. That said, lenders are generally more willing to grant a modification if it’s the first time you’re asking for one.