Fate of property in case of demise of borrower in case of reverse mortgage loan
Querist :
Anonymous
(Querist) 09 December 2011
This query is : Resolved
Dear Experts,
I solicit your valued opinion to a case where State Bank of India has stopped accepting EMI in the event of sudden demise of original borrower- a State Govt. Pensioner. The Guarantor of the instant loan, borrower's spouse who is now a family pension holder and stays in the financed house property and willing to be converted as the borrower is denied to be entertained and the matter transferred to Recovery cell of the bank for recalling of the advance with a short notice.
I would be extremely obliged if any member can suggest a way out to help the hapless lady.
V R SHROFF
(Expert) 09 December 2011
THE ACT OF STATE BANK IS QUESTIONABLE.
BANK IS CONCERNED WITH THEIR RECOVERY OF LOAN, AND IF A LEGAL HEIR TENDER THE SAME, THE BANK MST ACCEPT IT.
I suggest to send DD of Balance Amount with covering Letter of your Advocate, cum Legal Notice to accept the same.
In case Bank refuses to accept, file a consumer case in c form / civil suit with injunction to avoid auction.
Shonee Kapoor
(Expert) 10 December 2011
If you are a legal heir, and doesnot have the capacity to avail loan, the bank can ask complete money at one time.
However, try sending legal notice and see what happens after that.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Devajyoti Barman
(Expert) 10 December 2011
The thing is sanctioning or renewing a loan with the legal heir of the borrower depends upon the finance policy of the particular bank where the court may not interfere.
Raj Kumar Makkad
(Expert) 10 December 2011
I concur with the views of the experts.
prabhakar singh
(Expert) 10 December 2011
It is also surprising why Bank has not got the principal debtor insured against the loan.Perhaps there is some guide line in this regard,if i am not missing. Mr.Shah may search that to help here.
The next thing is that M/s.Barman and Shonee kapoor are right that heirs eligibility to repay works as factor in such decisions of bank and they always have a clause in their standing format of contract to ask the debtor to pay all.
Then first solution shown by Mr. V R SHROFF
though right but she is unable to pay.Then civil court's jurisdiction is passed on to Tribunals,so remedies through process of law could be there but subject to many conditions dependent upon action of the Bank for action etc.
So persuasive course meanwhile should go on.
jeevan1950
(Expert) 12 December 2011
Yes usually the Bank insures the debtor in housing loans. Legal heir can always step in debtors shoes and repay the amount. BAnk has no business to refuse the same. there must be someone interested in the said housing property and may be the bank is supporting him. I think Civil court can direct the bank to accept the balance and execute reconveyanace deed. Even the money can be deposited in court after filing the case. needs some thinking!
