Dear sir, I am Prathap from Nellore, AP. My Grandfather registered our house site in 2001 in Nellore, Andhra pradesh and took home loan of Rs. 2L in 2001 by mortgaging title deed papers in SBI. There is no update in registrar office about this and the EC is still on my grand father name. My father is also added as co applicant. He paid the installments till 2004 and due to financial losses he stopped paying dues. SBI moved to court and we got notices till 2007 and after that we didn't got any notices from bank. My grandfather died in 2007. I don't know all this information until I planned to get a loan on this property and looked for link document (That is mortgaged in the bank). Now my query is, 1) Is there any way to get a bank loan without that link document? (Because it's 2020 and last transaction is in 2001, I have true certified copy of the registration document from sub-registrar office, EC is very clear that no transaction has done, I will get register this property on my name as gift deed) 2) Suppose if I go for settlement of that loan, how much probably I need to spend to close the loan and get our papers back? Is there any cases happened previously where court directed bank to stop auction process and give settlement option i.e 25% or 50% of the total outstanding amount? Loan details are : Suit filed on 27/12/2004 Suit amount: 2,63,517 Interest : 12% (Bank manager said its monthly compounding and 2% penalty, which is very horrible to pay) As primary applicant (My grandfather) died and co applicant don't have any income source to pay off, how much maximum settlement I would get? How courts work in this regards? What will happen if another co applicant (my dad) also got deceased? The loan will pass to me or they will consider it as bad debt and cancel the loan and handover the property document? Is there anything I can workout with the lawyer who filed this case on behalf of SBI. Please let me know if I missed any point. Thanks you in advance for your help
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1) you would not get bank loan without link documents
2) ask bank for detailed statement of account for pending loan amount
3) seek waiver of penalty amount
4) you would be liable for father debts to extent of your inheritance
5) bank would not return original documents unless loan is repaid
6) contact a local lawyer
For loan, bank will ask to missing complain to police station and have to submit it to bank. Certainly, you are filling false complaint to obtain loan, hence committing a crime.
And it`s too long, bank may have lost property parers. If you go for settlement, bank will show dues of many lacs.
What is the result of suit ? Court have passed the order ?
Loan will not pass on you but recoverable from property inherited from father.
Don`t contact any one and first check the result of case filed by SBI stealthily.
The loan will only pass to you if you are guarantor or you have got any property in inheritance from the loan taker
NO BANK can sanction LOAN without doing the verification and Without Link documents.
Once settlement done with previous bank you can apply for loan.
1. For getting the documents back from bank you need to clear the dues towards bank.
2. It will be calculated by bank. Bank can settle the case in principal amount or demand penalty along with interest on loan.
3. Court will not direct bank to settle the loan by paying 25% or 50% of loan amount.
4. Loan will get transfered to legal heirs of deceased.
5. Yes you can approach advocate for bank who filed the case.
!. You should not try to have any transaction with the property by suppressing the facts of mortgage of the property to the bank, moreover the certified copy of the title deed cannot be supplemented to the original title deed.
The bank will not grant loan without obtaining legal opinion, in that legal opinion all the details can be obtained and the bank may not grant you the loan after coming to know about the existing mortgage loan.
The EC is not an authority to establish your title to the property.
2. You may have to repay the loan with interest accrued up to date , you cannot claim any exemption to it, moreover since you are not the legal heir of the deceased borrower, your application may not even be entertained by bank for clearing or repaying the loan.
Dear Sir,
Buying a house is the most expensive purchase you are likely to make, so you may need help in funding it in the form of a loan. What if you take a home loan, but after some time, find yourself unable to pay the EMIs? There could be several reasons for this, from losing your job to depleting your savings for a medical exigency. Will the bank seize your property if you miss 2-3 mortgage payments? No, not immediately, but if you continue to default for six months, the bank will take over your house.
Lenders are willing to negotiate
Attaching a property is the last thing a lender wants to do. Though banks have the power to enforce the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (SARFAESI) to recover non-performing assets without the intervention of a court of law, this is the last step they prefer to take. A bank usually lets one mortgage payment default slip by, but for the next one, it will mail you a reminder to inform you that your payments are late. After three defaults, the bank will send a demand notice, asking you to pay your dues as soon as possible.
“If the borrower doesn’t respond to any of the mails, the bank sends a legal notice through its legal department,” says VN Kulkarni, chief counsellor at Abhay Credit Counselling Centre, which is sponsored by the Bank of India. A bank waits for three months before declaring an asset a non-performing one. “After the end of this period, the bank can officially term the home loan an NPA and start the process of recovering the property through the SARFAESI Act,” says Kulkarni. Even after invoking the Act, the bank gives the borrower a 2-month notice period to repay the dues.
“Finally, five months after the first default, the bank sends a notice, stating that it has valued the property for a certain sum and that it will auction the house on a particular date. This is usually set for a month from the date that the bank mails you the auction notice,” adds Kulkarni.
