Can I sell a mortgaged property?


I own an apartment which I bought a few years back through a home loan. Since I am relocating to a different city, I need to sell the property while it is under a loan. What is the process flow for such a sale?


Since home loans usually have a long tenure, many people sell off their property before the end of the loan tenure. The process of selling of your property while continuing the loan is not very complicated.

You need to approach your bank with which you have mortgaged the property for a home loan and request for a loan outstanding letter. A loan outstanding letter contains your current outstanding balance in the loan account.

Now you have 2 options. If you have money in hand to close the loan, you can do it and try selling out the property. Or if in case you have identified a buyer, you can get into an agreement with him. The buyer can then pay the outstanding loan amount to the bank and the remaining amount to you. Once the buyer makes the full and final payment to the bank, the original documents will be released and you can transfer the property to his name legally.


Hi Sourav,

You have two options. One is that you will have to close the Home Loan by paying the remaining balance on it and get the property in your name so that you can sell it. This is a long process and might take time. Also, you might not have the funds for closing the loan. The other option is to find a buyer for your property who will be willing to take over your Home Loan. The bank will then transfer the Home Loan in the name of the buyer and if there is any additional compensation, the buyer will be paying it to you.

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BB Expert