has mortgagor refused to make payment with interest at 24%within period of 1 year . ?"
in such a case mortgagee can move court for sale of the property to recover outstanding amount with accrued interest
Validity of property mortgage
agreed that the mortgagor shall repay the amount within 1 (one) year along with interest @24% per annum from the data of this deed of mortgage. that the parties hereby agree that in the event of proceeding against the property by the mortgage to recover the mortgaged debt as per court of law to recover such account. subject to the above conditions, the mortgagor assures that he has full authority to mortgage the the said flat is not subject to any prior encumbrances. this is the agreement of simple mortgage executed on the 5th august 2013 .now what can i do please give me a best suggestion .
Asked 10 years ago in Property Law
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4 Answers
Mortgagee is authorised to move the court to realise the outstanding money advanced +interest from the mortgagor by way of selling the mortgagor's property, if the mortgagor does not honour the agreement between Mortgagee & Mortgagor and failed to make payment of Principal + Interest within the agreed period of 1 year.
Redemption of mortgaged property can be possible only on clearance of the dues as per settlement agreement. If the mortgagor has failed to make the payment of principal amount along with interest at the agreed rate of interest then mortgagee may move to court for causing sale of the property to recover the dues.
A). Mortgagor - You have bounden duty to pay the loan by 1 year with interest 24%
B). If you fail to pay -- Mortgagee( Ex: Bank ) has right to recovery outstanding amout with interest through court of law by sale of the property.
C) Prior Encumbrance: Any loan or debt already created on this Flat before execution of this agreement.
