Team-BHP - Help with a home loan!

Quote:

Originally Posted by Shakensoul (Post 912018)

Was the loan transfer process a big hassle ? How much did you pay ICICI for foreclosing the loan and other expenses ?

Not much hassles as property is clean and within a month of applying for transfer of loan to SBI, everything is settled and even I got the property documents from ICICI quickly.

I paid 2.25% of outstanding principal to ICICI bank + processing charges at SBI (3500)+laywer and valuation charges of Rs 3000/-.

I can recover these charges within a year, as difference between ICICI and SBI ROI is almost 2% which will readilly save Rs 2000/- pm for me.

Moreover, SBI being nationalized bank, you can believe them of not harassing the customer and is open to all rates and charges. But ICICI is not like that. Even now, I cannot get what is the floating ROI from any of its websites and not even FRR (floating reference rate) etc..

With Maxgain account, I can put all bonuses, surplus cash, savings in this account there by reducing the interest on the homeloan. Moreover, interest is calculated on daily reducing principal and not by monthly.

Take call on your own by examining everything..

Quote:

Originally Posted by married2speed (Post 912143)

You have to understand that the bank has no "proof" that your house will be mortgaged to them after they disburse the whole amount. You might even stop paying them the installement for both the interest and or the EMI post that. That is why they ask for the reciepts and keep them for their security without which the NOC is not issued.

All the best. However, Do hurry up with whatever you decide as both the builder and the bank charge a HUGE amount as "late payment" or "interest" or any other form of penalty in case of delay in payment.

Cheers!
M2S

But the property is already mortgaged to the bank :confused:, when the loan was sanctioned, they kept the property papers as mortgage.

I spoke with a HDFC Ltd. executive regarding the BT, he said processing fees would be approx 11k, 1k for lawyer fees, plus their ROI is 11% compared to Axis bank which is 10.5%.

We will be visiting Axis bank very soon.

Quote:

Originally Posted by Proxima (Post 912169)

Housing prices may drop 25%

Don't buy a house now, take one for rent and wait a bit. If not 25%, it will come down by atleast 15%.

As I mentioned in my first post, I have already bought the property, this is a post-purchase loan issues. Plus I don't think we'll get anything cheaper than what we already got, 24L for a 2+1 BHK and price for the same flat has already escalated to 30+ now :D

Quote:

Originally Posted by mahadev_kc (Post 912200)

Thanks mahadev, that was very useful.

The sales agreement is not required to sell the house? :)

What happens after the bank disburses the entire amount of say 16L, you pay your share, take the possesion and sell the house to someone?. A new sale agreement is made. What happens to the bank then? All they receive is the interest. This is why ICICI has a policy of making sure that the house is registered and in that registery, the house is mortgaged to the bank. Till the time they don't receive a copy of that, they do not issue an NOC.
The sales agreement is only a proof that you have taken a home and are not really property papers. It is of certain significance but not of utmost significance. Depends on how you perceive it.

Cheers!
M2S

Quote:

Originally Posted by married2speed (Post 912595)

M2S,

Please can you clarify what exactly are your referring to as property papers.

AFAIK the sale agreement is good enough and you cannot sell the house to someone else when the sale agreement is with the bank. In this case when the potential buyer goes for an EC the status will clearly show the present buyer and the documents mortgaged to the bank.

Quote:

Originally Posted by Mission_Safari (Post 912664)

AFAIK the sale agreement is good enough and you cannot sell the house to someone else when the sale agreement is with the bank.

That sales agreement is usually one sided. It is more like "Option to purchase a flat by paying X amount by Y date".

For example, it might say if payment is delayed by 2 weeks then builder can sell the house to someone else.

Only the sales deed that has been registered and stamp duty has been paid, is proof of ownership.

Builders use things like that to extract heavy penalties from buyers. And in some casses will refund your money and sell flat to someone else (at a higher cost which was trend till a year ago). You might have booked the property at rate of 2000 psf, builder will refund your money and sell the property at 4,000 psf.

Quote:

Originally Posted by NetfreakBombay (Post 912714)

My bad. I was referring to the sale deed. Sorry for the confusion.

Both Mission safari and netfreak are correct in their own understanding of things. Mission safari, what you are saying holds true if one tends to do things the "right" way while what NFB says about the builder being able to sell off the flat, that although doesn't really happen but it's not unlikely, hence the sale agreement/deed blah blah blah, is of little significance as such. Till the time, the registeration papers of the house do not reflect that the house has been mortgaged to the bank, one can "wriggle" out of it at the expense of the legal system loopholes. One has to understand that in between a builder and a bank, the potential looser is the customer and he can only pray that things go right.

One advice I would like to give is that you try and take a "home saver" kind of loan.
The deal is like this.
You get a bank account where you park your surplus cash. Your interest is calculated based on Principal remaining - surplus cash in this account. So your EMI is much lower.
At times when get salary I move it to my "home saver account" and save upto 10-15% in EMI. Of course this is a current account with no interest, but normally savings bank interest is pretty low, so I lose a little in interest, but same much more in EMI.

Quote:

Originally Posted by married2speed (Post 912905)

what NFB says about the builder being able to sell off the flat, that although doesn't really happen but it's not unlikely

Yes usually things don't go to that extreme.

Most of the times, builders will ask for more money (even if payments are delayed due to builder not meeting some time commitment in terms of slab completion). And that too in cash :Frustrati

But with real estate market getting closer to reality, hopefully this will be a thing of past.

Quote:

Originally Posted by kuttapan (Post 912626)

Good luck to whoever is thinking of dealing with SBI. Me, I needed an anger management therapist and my wife needs a shrink to tide over the experience. If you see the letters all wobbly in this post, thats coz they are shivering of fright, the way I angrily tapped at the keyboard. Looks like the therapy did not work.:Frustrati

Looks like you had a traumatic experience and after effects are still there, if possible could you elaborate a little more what went wrong and finally what went right, so that we fellow humans can be spared :D

Meanwhile I have asked the bank and builder to fax all the documents regarding total payments received and outstanding, after which we'll have a better idea.