Hello there. I saw you asking what happens when you sell a property with a mortgage and can help you with it. I did the same a few months ago when I sold my house in Jaipur while a home loan was still running. When you sell your house with a mortgage, the sale proceeds are used first to pay the outstanding mortgage balance. I will share the detailed process involved below.
What happens when you Sell a House with a Mortgage?
Here is what happens when you need to sell a house with a mortgage:
To sell the property, you will first and foremost need to have the lender’s consent.
The consent is typically provided as a letter which will provide the amount, on payment of which the outstanding loan will be fully paid off.
Once the complete payment is made towards the loan, the documents held by the lender will be released.
The amount mentioned in the letter is calculated as on a future date, to give the buyer time to arrange the funds.
Once all the dues are cleared, the bank will issue you a loan closure letter, which will stand as proof that the loan amount has been cleared in full.
Ensure you get the no-dues certificate from the lender to overcome any issues in the future.
This is all from my side. I hope this helps you.
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Some related information:
How to Sell my Mortgaged Property? Is there a Need of Sale Deed During the Process?
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What happens when you Sell a Property with a Mortgage?
vivek49
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2025-05-30T16:21:01+00:00 2025-05-30T16:21:02+00:00Comment
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