Equitable mortgage
ANIL KUMAR VERMA
(Querist) 13 December 2011
This query is : Resolved
equitable mortgage has been created by the borrower for loan. borrower expired, now how e/m shall be revived and by whom?
secondly, in case of guarantor whose property is mortgaged (E/M) he dies how E/M shall be continued, because borrower wish to continue the same.
ajay sethi
(Expert) 13 December 2011
if guranator dies borrower has to furnish fresh guarantee .
if equitable mortgage has been created by depsoit of title deeds then on death of borrower legal heirs will have to pay of the outstanding loan if they want to release the property
Shailesh Kumar Shah
(Expert) 14 December 2011
who was died? Borrower or Guarantor.
or just presumption?
K S GOSWAMI, Advocate
(Expert) 14 December 2011
Once a mortgage is always a mortgage and there are two solutions either redemption of mortgage or foreclosure.Either remedy may be availed as per the circumstances of the case.
vasant kulkarni
(Expert) 14 December 2011
IF THE LOAN TAKEN AGAINST E/M IS REPAID,THEN THERE IN NO LIABILITY ON SURETY.IF LOAN IS OUTSTANDING AND REPAYMENT IS REGULAR,THERE IS NO WORRY.
AS LONG AS SECURITY IS WITH BANKER,GUARAONTERS NEED NOT WORRY.
Guest
(Expert) 14 December 2011
Agree with Shri Sethi
RAJU O.F.,
(Expert) 14 December 2011
As the borrower died, in the first case, bank has to recall the loan. The legal heirs of the property owner who had inherited the estates of the borrower would be liable. If the legal heirs wanted continuation of the loan and if the bank also willing, fresh loan can be given on security of fresh mortgage created by the persons inherited the property.
For the second case also, if the guarantor who is also the mortgagor died, the loan has to be recalled and continuance can be considered in procedure as stated above.
Advocate. Arunagiri
(Expert) 14 December 2011
The EM is on the property. Even if the borrower or guarantor dies, the status of the EM status the same.
Either the legal heir of the borrower or the guarantor can release the property by paying the loan amount.
The banker is safe.
malipeddi jaggarao
(Expert) 16 December 2011
As I understand, your query is borrower, whose property is under equitable mortgage, died. How to continue the e/m. Like-wise the guarantor whose property is under e/m died,how to continue the e/m.
First part - Borrower died. If the legal heirs wishes to continue the liability, The liability will be passed on to the legal heirs by obtaining fresh set of security documents. The legal heirs of the property which is under e/m will execute a fresh e/m to continue the loan with the bank.
second part - guarantor died. Generally the account is recalled. In case both borrower and legal heirs of guarantors are agreeable to continue the loan, the account will be reviewed including the legal heirs of the guarantors as new guarantors (leaving the name of deceased guarantor) and the fresh guarantee letter has to be signed by all the legal heirs of the guarantor. They are also required to create a fresh equitable mortgage to continue the property for securing the existing liability of the borrower.
