How do I get a mortgage lien removed from my home once I repaid the loan in Bangalore?

If the mortgage has been registered, then you should take an NOC from registrar’s office to get the lien removed. For this both the parties, borrower and representative of the bank need to be present there. In case, the mortgage is not registered, the bank will simply return your documents.

What are the characteristics of a mortgage lien?

All liens have two specific traits: They’re either voluntary or involuntary, and they’re specific or general: Voluntary or involuntary: You either agree to have a lien put on your property or it’s put there against your will.

What’s the difference between a lien and a mortgage?

A mortgage is basically just a loan that allows you to borrow money to buy or fix up a house. A lien is the bit of the mortgage that gives the lender the right to seize and sell your home if you default on the mortgage payments.

Can I close my home loan before tenure?

A borrower can also preclose a housing loan to save up on interest. Closing off a loan before the term is due allows the borrower to evade a part of the interest. However, one must take into consideration the home loan preclosing charges that a bank may charge before preclosing.

2 Answers. A loan with a lien or a mortgage is a type of secured loan, where the borrower puts up assets (e.g., land titles, financial instruments, vehicles) that they can lose if they don’t repay.

What are some common questions to ask about a mortgage?

Here are some common mortgage questions you can dig into on your own to help gain a better understanding prior to meeting with a lender. How Does A Mortgage Work? A mortgage is a loan for your house. You would use a mortgage to purchase a home.

When does a lien on a house end?

A lien holder’s rights typically do not include possession of the property, so don’t expect your mortgage banker to be moving her things into your house anytime soon. The lien is usually extinguished as soon as you pay off the underlying debt or meet the terms of the arrangement you agreed to in the promissory note.

Can a lien be placed on a property?

A legally enforceable right against your property can be called a lien. Property taxes, judgments, association fees, money owed to contractors: all these can become liens until they are paid. Your mortgage, similarly, is a lien from the outset.

Can a mortgage lien be placed on a home?

Yet, if you take out a mortgage to purchase the property, which many homeowners do, homeownership is a bit of a misnomer. In fact, when you get a mortgage, your lender places a mortgage lien on your property, which allows the lender to take possession of your home if you do not repay the loan.

When does a bank take out a lien on a house?

Banks take out liens automatically when a borrower is advanced a mortgage loan, making this a voluntary lien. For involuntary liens, a creditor may seek legal recourse if a loan or other financial obligation isn’t fulfilled by going through legal channels to file a lien with a county or state agency.

What happens to a lien when you refinance a home?

These involuntary liens are problematic for lenders. Refinancing by its nature clears a voluntary lien. The first mortgage being refinanced pays the existing mortgage and thus releases the lien.

Why do you need a first lien on a house?

The first lien on most houses is actually very helpful: your mortgage. A mortgage enables you to afford a house over time instead of paying for the entire cost upfront in cash. It gives many of us something to lean on in order to get a permanent place to put our roots down, become part of the community and maybe raise a family.