Mortgage Note Release Of Liability: Fill & Download for Free

If by selling your home you mean the investor is taking out a new mortgage and yours is being paid off then sure. But if he is is taking over your mortgage and you don't notify AND get written release of liability from the mortgage holder than you may be placing yourself in a very risky situation. You are fully liable for the mortgage (debt) and have lost control of the property to some who is then going to rent it out.Your mortgage has language against this called an alienation clause follow by an acceleration clause which means the lender can call the note due and payable, giving you 30 days to come up with the money.If you own the home free and clear and the investor wants you to be the lender, you may want to consider if you feel qualified to go through the legal process of foreclosure, which can be quite costly.So bottom line you are taking all the risk and getting very little in return. If you decide to go forward, please hire a real estate attorney or real estate broker to represent you. Their fee is minuscule compared to making sure you are protected in this very risky process.I have over 35 years of experience in residential estate and lending.

Why do you want to?Unless you’ve been ordered to do it by your divorce decree, there’s no particular advantage to you in getting your ex’s name taken off the mortgage. There is an advantage to your ex, in terms of his or her ability to do loan financing in the future and in terms of his/her credit if you are a poor payer, but there is really no advantage to you.If you have been ordered to do it, then you have only three options:Get your lender to agree to an Assumption and Release, whereby your ex is released from the obligation of the mortgage in exchange for your assumption of the sole liability, or in exchange for the addition of someone else as a guarantor. This used to be fairly common but, since most mortgage loans are now sold by the originating lender on the secondary market, it is much harder to do this these days.Refinance the property in your own name, possibly with the addition of a guarantor if your credit and income are insufficient to support the new loan.Sell the property.Your divorce lawyer should have already explained this too you.

Documents required by a bank can typically be classified into two categories.(B) Documents required for sanctioning the loan. These documents typically include the followingApplication Form with photograph duly signedKYC Documents:One of the following documents as proof of Identity and Address also known as officially valid documentsPassportDriving LicenseVoter IDPAN CardAdhaar cardNREGA Job CardIf the above documents are not containing your address proof, then additionally you have to provide separate address proof by way of a Telephone bill or Electricity bill OR Gas Bill etc. Without these documents one cannot go aheadIn addition to this Office address proof may be required3) Documents in support of Income and financial stabilitySince to be eligible for home loan Income level is a prerequisite, it is necessary to produce following documents in support of consistent incomeLatest 6 months’ bank statement (salary account for salaried, Current Account for self-employed)( To get transaction profile and existing outflows if any)Latest 3 Months Salary Slips ( To verify Consistency of Salary Income)Form No-16 or IT returnsComputation of Income( for businessmen)Balance Sheet and PL Account( For business men)Proof of repayment track record of existing loans if anyLetter from employer regarding Employment stabilityIncorporation details with supporting documents for businessmen to ascertain business vintageDetails of Assets and Liabilities to ascertain net worth along with documentary evidence4) Property Related DocumentsAgreement to Sale: This is the basis for deciding the loan amount and the document sets various terms and conditions of sale along with timelines for payments and deliveryChain of documents: To trace the flow of title of the propertyLegal Search Report( From Banks panel advocate): To ascertain clear and marketable title. Expenditure to be borne by the borrowerValuation Certificate(From Banks panel Valuers):To ascertain the value of the property, more relevant in case of second sale to ensure that the sale price & loan amount is justified. Expenditure to be borne by the borrowerRevenue receipts: To ensure that there are no revenue dues. Otherwise revenue authorities have paramount charge over the propertyNIL Encumbrance Certificate:To ascertain whether any prior charge of any other bank exists on the propertyIn case of construction: Approved plan,Permission for Construction, allotment letters in case of land allotted by Development Authorities/Town planning authorities, Estimate of construction etcSome banks insist on a cheque for processing fee also along with the papersThough the list is long,it is not difficult to collect these papers since except property papers all others are generally with the applicant himselfIn case the purchase is from a builder, even all the property papers are provided by builder himselfIn case the property is pre-approved by a bank, then it is even more easierOnly in case of construction of a house on a plot, one will require to exert for property papers comparativelyAll these papers will enable banks to vet the proposal diligently. Vetting of the property papers by banks ensure buyer’s interest also(B) Documents obtained by the bank post sanctionCopy of the sanction letter duly acknowledged by the borrower agreeing to the terms and conditions of the loanRequest letter by borrowers for release of facilityDemand Promissory NoteLoan AgreementRegistered Mortgage Deed in case of Registered Mortgage or Memorandum of deposit of title deeds in case of Equitable MortgageOriginal Title DeedsReceipt for amount of loan receivedRecovery instructions (Auto Debit or NACH)Note: Registered mortgage attracts heavy stamp duty and Equitable Mortgage attracts nominal stamp duty. Entire stamp duty and related expenditure to be paid by borrower