Refusal to change loan account no. 211113874 from deceased father’s name to any of legal heir’s name
Amolkishor Ram
(Querist) 25 April 2013
This query is : Resolved
DEAR SIR
MY FATHER LATE. SURENDRA RAM S HAD TAKEN A FIXED RATE HOUSING LOAN FOR ABOVE MENTIONED PROPERTY FROM YOUR INSTITUTION ON 27 AUGUST 2002 BEARING A LOAN ACCOUNT NO. 211113874 FOR THE AMOUNT OF RS. 275000/- (RUPEES TWO LAKH SEVENTY FIVE THOUSAND ONLY) AT APPLICABLE RATE OF INTEREST 11.25% PER ANNUM FOR A PERIOD OF 180 MONTHS COMMENCING FROM SEPTEMBER 2002 WITH AN EMI OF RS. 3232/- (RUPEES THREE THOUSAND TWO HUNDRED AND THIRTY TWO ONLY).
FROM SEPTEMBER 2002 MY FATHER HAS PAID ALL EMI’S FOR ABOVE MENTIONED LOAN TILL APRIL 2008, BUT ON 5TH MAY 2008 HE PASSED AWAY UNFORTUNATELY.
WE HAVE BROUGHT THIS INCIDENT TO THE NOTICE BRANCH MANAGER, HDFC FINANCE LTD. AT VIRAR BRANCH IN THE MONTH OF JUNE 2008 BY A LETTER AND COPY OF DEATH CERTIFICATE (COPIES ENCLOSED). IN THIS ISSUE THE BRANCH MANAGER TOLD US TO PAY THE REMAINING EMI’S THROUGH MY ACCOUNT OR MY MOTHER’S ACCOUNT. HOWEVER THE MANAGER REFUSED TO CHANGE THE LOAN EITHER INTO MY NAME OR INTO MY MOTHER’S NAME AND TOLD US IF YOU FAIL TO REPAY THE REMAINING EMI’S THEN THEY CAN RECOVER THE BALANCE AMOUNT BY AUCTION OF PROPERTY.
SINCE THEN (i.e. FROM MAY 2008) WE PAY THE EMI’S OUTSTANDING FROM MY FATHER’S LOAN FROM MY MOTHER’S ACCOUNT. HOWEVER DUE TO REFUSAL BY THE MANAGER TO CHANGE THE LOAN INTO MINE OR MY MOTHER’S NAME WE HAVE NOT ABLE TO CHANGE THE NAME IN HOUSING BODY RECORDS OR IN THE MUNCIPAL RECORDS AS BOTH THE BODIES REQUIRE NOC FROM BANK TO CHANGE THE PROPERTY INTO OUR NAME BUT THE BANK REFUSES TO GIVE THE SAME STATING THAT THE LOAN IS IN MY FATHER’S NAME.
NOW, I HAVE THE BELOW MENTIONED QUERIES.
1) IN THE EVENT OF DEATH OF THE BORROWER DEPENDENTS OF BORROWER NEED TO PAY THE REMAINING EMI’S TO GET RIGHTS OF PROPERTY?
2) WHY THE LOAN WAS NOT TRANSFERRED IN MY MOTHER’S OR MY NAME IN THIS CASE?
3) IS IT POSSIBLE TO TRANSFER THE ABOVE MENTIONED LOAN TO MY NAME? IF YES WHAT IS THE PROCEDURE FOR THE SAME?
4) IF THE DEPENDENTS OF BORROWER HAS TO PAY THE BALANCE EMI’S IN THE EVENT OF DEATH OF BORROWER, THEN HOW THE DEPENDENT CAN GET RIGHTS OF PROPERTY AND WHEN THE PROPERTY CAN BE TAKEN IN NAMES OF DEPENDENTS? PLEASE GIVE BRIEF DETAILS ABOUT TRANSFER OF PROPERTY AS LEGAL HEIRS BASIS IN THIS CASE.
5) IF RECOVERING THE BALANCE EMI’S THROUGH DEPENDENTS IN THE EVENT OF DEATH OF BORROWER IS LEGAL THEN PLEASE ISSUE ME A COPY OF RULES AND REGULATION PERTAINING TO THIS CASE AND ISSUE A LETTER ADDRESSING TO MY MOTHER SMT CHANDRAKALA DEVI SURENDRA RAM OR ME MR AMOLKISHOR SURENDRA RAM STATING THE ARTICLES, TERMS AND CONDITIONS AND RULES UNDER WHICH WE HAVE TO PAY THE BALANCE EMI’S.
PLEASE REPLY WITH THE ABOVE MENTIONED QUERIES.
Devajyoti Barman
(Expert) 25 April 2013
1. Payment of EMI is not the condition to inherit the property. The legal heirs need to repay the loan to clear it from mortgage.
2. Ask bank.
3.Apply to bank.
4.The legal heirs are already owners of that property by way of Law of Succession. They just need to inform the creditor about change in tile.
5. Meet an advocate and consult for the further advice.
Guest
(Expert) 25 April 2013
At first, I would like to point out that you have discussed your problem under the wrong topic of Intellectual Property Right. The problem does not relate to intellectual property. You could have posted your problem, either under the topic of property law or the banking law.
However, my opinion on your queries are as under:
1) There are two separate issues, inheritance of property under Hindu Succession Act and repayment of debt as amortisation of debt on the property under the banking laws. The name in loan account of your father cannot be changed in favour of any of the heir of your father. Your motyher or you are liable to clear the debt on one hand and inherit the property separately. Even the bamk on clearance of loan dues would release the property in your father's name not in the name of any one else, irrwespective of fact who pays the EMI.
2) Reply lies in point (1) above. No banking law permits change of name of operator of the account.
3) No. Of course, liability of payment of loan dues lies on the heirs or the guarantors.
4) I endorse the views of Shri Devajyoti on this point.
5) The terms of agreement with your father can be the source of information to you. You can ask for a copy of the agreement from the bank. Please don't forget, if you don't clear the debt dues, the bank would have the right to auction the mortgaged property of your father in the open market and you would be quite at loss. So, don't try to falter in repayment of EMIs or cleance of balance with interest due.
ajay sethi
(Expert) 25 April 2013
agree with experts . repay the loan and take original documents from the bank
Raj Kumar Makkad
(Expert) 14 May 2013
I also do agree with the advice of the experts.
