Can I sell the house even when the Home loan is not paid off

Of course, you can sell the house even when the home loan is outstanding but you will have to take care of the following things:

• You will need a consent letter from your home loan lender. This letter usually contains the amount at which the home loan would be considered fully paid off. This amount would also be inclusive of prepayment charges as applicable and is calculated at a future date to give you enough time to find a buyer. Based on this letter, you can negotiate with potential buyers.
• If the buyer wants to take a loan to purchase your house the process would be much simpler if he/she approaches the same lender. Then the lender does not need to release the title papers to another lender before getting the payment.
• If the buyer wants to make a direct outright payment to the bank he/she can do so with the help of the consent letter and the balance amount is paid out to you. The property papers will be released only after the bank has recovered the entire amount, including the prepayment charges.