Loan to Buy Property with Title DefectLoan to Buy Property with Title Defect with a regular home loan
Apnaloan.com Research Bureau
10 Aug 2007
I am buying a residential property that has a title defect. My lawyer has examined the documents and is confident that the defect is minor and can be rectified in the future after I become the owner. I am getting the property very cheap due to this defect. I need a loan to buy this property. I can provide security of my existing house, which has a much larger value than the new property that I am buying and is free from any charge or encumbrance. I am not interested in taking a Home equity loan (loan against property) as it is more expensive. Can I get a regular home loan for buying this property?
To the best of our knowledge only one foreign Bank has a program to provide a regular home loan against security of alternative property where due to some reason the property being bought cannot be offered as security. The loan will be slightly more expensive than a regular home loan but cheaper than a home equity loan. The reason this kind of a loan is cheaper than a home equity loan is because the Bank monitors the end usage of the funds and makes sure you use it for purchasing the property (with the title defect).
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