Housing Loan
Soumya Naskar
(Querist) 30 May 2010
This query is : Resolved
Sir,
My father took a housing loan of Rs. 7,00,000 (seven lacs) from State Bank of Hyderabad, Howrah branch, West Bengal by mortgaging the original title deed of our residence, which is in the name of my father. He was the sole borrower (no guarantor)& the tenure of the loan was 60 months, & the EMI was Rs. 11,000 initially & then it was increased to Rs. 14,100. Now he repaid back Rs. 7,08,400 (seven lacs eight thousand & four hundred) in 52 installments. He was never a defaulter in paying this EMI to the bank.
Unfortunately my father passed away in July 2009 during the course of this loan keeping behind three legal heirs- my brother, my mother & myself. He was the sole earning member of our family & we were dependent on him. When he expired the outstanding loan amount was around Rs. 1,26,000 (one lac twenty six thousand). I approached the branch manager several times & requested him to negotiate & compromise the outstanding loan amount but he refused to my request & insisted me to either continue to pay the EMI of Rs. 14,100 or clear the entire outstanding loan amount at one shot.
My question is since my father took the loan as a single borrower (there is no guarantor), are we, the legal heirs responsible to clear up his liability. If yes, can we compromise on the outstanding loan amount & to what extent? Also what is the procedure of loan settlement what legal steps we can take so that the bank cannot initiate any legal procedure against us.
Regards,
Soumya Naskar
Ph: 9804616166
Kumar Thadhani
(Expert) 30 May 2010
NASKARJI, even though there is no guarantor of the abovesaid property,however the bank has obtained mmortgager title deed in their favour, you will never be regained clear title of your property only once you had cleared EMI of balance for 8 months which are due to be payable by you as the legal heirs.
A V Vishal
(Expert) 30 May 2010
My question is since my father took the loan as a single borrower (there is no guarantor), are we, the legal heirs responsible to clear up his liability.
Yes, since as legal representatives of your deceased father when you inherit his properties you have a responsibility to clear his liabilities. Where there are rights there are duties and every enjoyment has a responsibility attached to it.
If yes, can we compromise on the outstanding loan amount & to what extent?
Compromise is the discretion of the Bank Manager and further the settlement amount is as mutually agreed by both the parties.
Also what is the procedure of loan settlement what legal steps we can take so that the bank cannot initiate any legal procedure against us.
Approach the bank manager with a written request and also forward a copy of the same to the next higher official seeking settlement, however, note that the bank has right to proceed against you under SARFAESI act. About the legal remedies available to you, I must say you have none since the banker has every right to enforce his legal debt.
krantiveer
(Expert) 30 May 2010
If you take the assets you have to take the liabilities as well.
Banks have their rules, though there are provisions for compromises, you will have to talk with the manager of the head office.
Y V Vishweshwar Rao
(Expert) 30 May 2010
Death of Your father who was the sole earning person and you have no other earnging person in the family- That your father sincerly paid the 52 EMIs - this situation can be explained in detail to the Bank Manager / AGM /DGM and Recovery Cell of the Bank and request them to reduce the liability and your family members have to pay the due amount as settled under OTS/ or/ otherwise , as suggested other lrd friends
Parthasarathi Loganathan
(Expert) 30 May 2010
The loan can be rescheduled or restructured with fresh pay plan making the legal heirs to repay the loan dues. However, in such cases banks always insist to clear the dues in full quits and release the title deeds to the legal heirs only based on Legal Heirship certificate only.
Y V Vishweshwar Rao
(Expert) 30 May 2010
It is true after the death of Father, any person in the family is earning person and can repay the rescheduled loan , according to the eligibility of of said family member the loan about Rs;- 1,30,000-00 with future interest can be Rescheduled by the Bank by execution of fresh loan documents by all the legal heirs of Deceased Borrower.
