Selling property in mortgage
roger fredrick
(Querist) 05 February 2012
This query is : Resolved
Dear experts my client whose property was under mortgage in Syndicate Bank had sold the property to a third party using the copy documents. His property worth is double the loan amount. Therefore when he tried to settle amount to bank without informing them about the sale bank is trying to collect the interest as on date and are not in a mood to settle for less.He wants to pay only 50 percent of the interest accumulated so far. Whom should he approach to resolve this issue?
RAJU O.F.,
(Expert) 06 February 2012
Person purchasing property with copy od the title documents must presume that the original is mortgaged in bank or any FI. So he purchased the property subject to mortgage. Bank will release the mortgage only after settling the dues of the borrower. You are 'third party' only as far as the bank is concerned and hence they may not even negotiate with you for settlement. If bank is proceeding under SARFAESI Act, they can sell the property and recover their dues and surplus if any would be paid to the rightful owner.
prabhakar singh
(Expert) 06 February 2012
The buyer of mortgage has bought it with loan of bank and shall have to retire the loan with interest either by negotiation and settlement or by paying off bank demands.
