Home loan payment after death
shashank vaishnav
(Querist) 17 May 2014
This query is : Resolved
Sir/Ma'am
My father took a housing loan from icici bank.His unfortunate death caused us alot trouble in repaying the loan.Even after his death we continued to pay the EMI for about 60 months.Now we are bankrupt.
CAN BANK CONSIDER ALL EMIS AS PRINCIPAL AMOUNT AND FORGIVE THE INTEREST?
please reply..i am in trouble.
thanks
Sankaranarayanan
(Expert) 17 May 2014
approach the concern authority first and explain the situation .
Kumar Doab
(Expert) 17 May 2014
Housing loan is usually a secured loan.
After the death did you sign undertaking to service the loan liability of deceased.
After the amendment in Sec6 of Hindu Succession Act there is NO pious liability of legal heir to pay the debt of deceased father.
You may try and settle with bank.
The bank may settle.
You shall need to apply negotiation skills.
Rajendra K Goyal
(Expert) 17 May 2014
The Bank is having adequate security in its hands, no Bank would agree to your proposal in such situation.
You can explore the scope of disposing of the property and pay the Bank loan outstanding to escape from further panel interest, legal charges and lot of other charges, which may result in almost nil surplus for you if Bank prefers to auction the property.
Kumar Doab
(Expert) 17 May 2014
Agreed with view point of Mr. Goyal.
Give it a due thought and explore all possibilities.
Sudhir Kumar, Advocate
(Expert) 18 May 2014
not a legal query.
man having a house cannot be bankrupt. by now sale value will be much much much more than pending loan.
Dr J C Vashista
(Expert) 18 May 2014
I agree with the experts, especially Sudhir Kumar ji.
malipeddi jaggarao
(Expert) 18 May 2014
It is a secured loan. Bank has the right to bring the property for sale and realize its money. However, under special circumstances, it may waive penal interest and other charges if properly represented but not the entire interest. That all depends upon the status of legal heirs, marketability of the mortgaged property and your convincing power seeking waiver for at least part of the interest.
Biswanath Roy
(Expert) 18 May 2014
I endorse the views of Learned Mr. Rajendra Kumar Goyal. Follow his advice.
T. Kalaiselvan, Advocate 
(Expert) 18 May 2014
As opined by experts, it is a secured loan, hence bank can proceed with recovery procedure as laid down in the rules in case of default in repayment, hence it is always better to arrange for an alternative and settle the issues smoothly as possible.
