Getting Out of a Home Loan

Home Loan

Home loans a product that has caused benefits for many of us and sorrows too which are issued by the bank. A home loan can turn out to be a boon for someone as well as a curse for someone. It totally depends on the situation the loan is borrowed by the borrower. Like, if a borrower is looking for a new home or some home related issue such as renovation than home loan turns out to be a boon for that person. The person gets the home of his dream at the best price and everything. Similarly, if a person buys a home at the best rates and everything in the market but, due to some particular reason such as the transfer of the job in a year of the borrowing of the home loan, the borrower might have to sell it. Then the home loan for that particular person becomes a curse. Well, there is a particular way out of everything if it is a deal in the patience of mind. There are a few ways where you can get out of your home loan without any issue. Let’s have a look at them.


This is the first option that hits a borrowers mind when he thinks of getting off the home loan from his head. Through this quick sell option, the owner can actually easily clear the hassle of the getting off the home loan thing. The process is simple but is timely in nature so the owner might have to wait until the property is sold. The process involves the selling of the property by the borrower at a less rate than the amount which is owed by the borrower on the mortgage. However, the lender who comes into the picture here needs to approve things for the borrower to ease the things up for him and to come into action. Well, the approval takes a lot of time as the condition of the home and the real estate broker’s experience in the negotiation is taken into consideration and plays a vital role at the time of short sale. Price can also become one of the things of concern for the owner where he tries to keep the price stable inspite of the time frame which is long. If, the borrower emphasis on the price too much then, the borrower can get the contract back with the additional pushback from the seller’s lender. Also, if the borrower is not comfortable with the property for the sale in the market, he can make the short sell approve quickly by negotiating a deal directly with the lender which is known as deed-in-lieu. Also, ask the lender for a small fee to help you relocate at the time of the deed-in-lieu. On a further note, ask the lender if we can lease the property from the lender after the completion of the deed-in-lieu transaction. This might take short time but has negative consequences on your CIBIL score and creditability of borrowing.


The second situation where the home loan can be refused or the borrower can get out of the home loan is the strategic outfit. The strategic outfit is a situation where the borrower is capable of paying back the mortgage amount suddenly backs off due to the reason of the diminished value of the house. This value turns out to be even lower than the loan balance borrowed by the borrower. The approach in this type of getting out of the home loan process sounds good but, at the same is the first strategy of getting out of the home loan i.e. of the long time frame in nature. Also, the banks won’t accept such naïve explanations for such a thing; they are surely going to stretch it. So, be prepared to go a long distance in the negotiation when it comes to the bank. In fact, a strategic default can take more time than a year depending on the laws and how quickly the lender might be able to sell the repossessed property. Well, if all of this works out proper then you will be able to get out of your home loan but, if something goes out of the expectation, then, this type of process may affect your CIBIL score as your capable of paying back the amount but you’re denying the payment. Also, you can have issues in tax and it might take a long time to get a new mortgage for years unless the default is cleared.


This is the final way through which you can get out of a home loan process with less hassle as it is swift in nature. In this type of process of getting away from the home loan, you have to literally give away the house. This is very common for some well-to-do people as a gift. The grandparents or the parents give the real-estate property as a gift or a vacation spot to the following generation. The gift is more preferred over the quick sale as, the owner might be able to recover the money out of the quick sale but, the family won’t be able to rejoice again the feeling of that home. The gift requires some paperwork which can be prepared by the attorney and won’t take much time to be executed. So, you can get out of the home loan easily without any issue.

Well, there are other ways of getting out of the home loan too. For instance, you can lease your property to a third party, and use the payments to get a flow on your mortgage. Well, you can hold your patience until the correct time arrives and sell the home for you to get a breakeven point on what you owed. Also, pay the additional fees if required. Thus, you can get rid of the home loan without any hassle if any of the emergencies arrive where you’re not in the situation to hold your home for too long.


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