Ananda Rajkumar (Senior Reseach Scientist) 22 November 2011

Registered mortgage - no accepted for hdfc loan?

Dear All, I have paid advance to a flat owner to buy his flat as a second owner. He has bought that flat by means of Indian bank loan for which the bank has done registered mortgage for the loan amount of the property. I have applied for HDFC loan for this property and after the document verification for 1 month, they have given me the approval letter. During the application process I have explained this to the concerned executive also about the mortgage. Now when I apporached them for disbursement the branch manager said that for registered mortgage the institution does not fund. When I asked why they have not checked that earlier and rejected my application and asked about the processing fee of Rs.22000/- they have charged, he was taken aback and asked me some time to tell anything on the loan. Is it not accepted by financial insitutions to have a registered mortgaged proerty as resale? The seller's bank is ok and will give NOC once the payment from my bank is done. Kindly advise me.

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2 Replies

pervez (adviser) 22 November 2011

Yes, legally it is possible.. No hitch.. Depends on which bank you are dealing and what are there internal guidelines in this respect... If not satisfied.. approach higher ups or banking ombdusman to redress yr grievance...

Kumar Doab (FIN) 22 November 2011

You have posted that "During the application process I have explained this to the concerned executive also about the mortgage." Is there any column in the loan application for this and have you supplied the appropriate details to HDFC. If all this is verbal the concerned bank executive may decline to save his job.

Do you have the certified copy of the loan application submitted by you? If not you are within your rights to obtain it from BM and you should obtain it at once.

The BM also knows that that the whole exercise can bring bad reputation to the bank and may culminate in an altercation/dispute, hence can help by obtaining acceptance of negligence by the executive, which shall help you in the long run.

Kindly, build your record in your favor. You shall be within your rights to demand refund of processing fee.