Bank loan

As per extant acts in vogue: The SARFAESI Act provides for the manner for enforcement of security interests by a secured creditor without the intervention of a court or tribunal. If any borrower fails to discharge his liability in repayment of any secured debt within 60 days of notice from the date of notice by the secured creditor, the secured creditor is conferred with powers under the SARFAESI Act to a) take possession of the secured assets of the borrower, including transfer by way of lease, assignment or sale, for realizing the secured assets b) takeover of the management of the business of the borrower including the right to transfer by way of lease, assignment or sale for realizing the secured assets, c) appoint any person to manage the secured assets possession of which is taken by the secured creditor, and d) require any person, who has acquired any of the secured assets from the borrower and from whom money is due to the borrower, to pay the secured creditor so much of the money as if sufficient to pay the secured debt. Therefore, Bank can take possession of a property under mortgage to them. You may approach the bank which lent your father and have a discussion for possible compromise and concession in interest.

They always remain as co-owner with other sharers and can demand  and even seek partition though the property is not divided in metes and bounds.

Your home builds value both emotionally and economically with time. With banks/private/relatives    LoansAgainst Property you can leverage the economic worth of your home while continuing to enjoy occupancy of the same, so that you get immediate finance to meet a variety of personal and business needs.

If there is a will to repay debt , there can be hundred ways..  But to retain the debt and building is difficult.  You can not have the cake and it it too.

As the value of the property is more than the outstanding, he can give parri pasu charge and obtain personal loan, clear his account from NPA status.

Or those persons who are interested in the house, can agree to purchase hsi share in the property and advance him that amount.

Thanks for the valuable information. 

I would like to sell my house and clear the debt. So would like to know any way in which the bank could agree for a concession, say the loan is 40 lakhs so how much should i offer.

The market value of the property mortgage is something around 45 lakhs.

And also what can i do if the bank doesnt responds at all.

When a Bank is entitled for entire amount, why should they forego the amount, when property value is more.  Without stating about the proposed sale , bargain for an amount, get a commitment letter from them that you can pay Rs.....before....in full and final settlement and closure of educational loan to...................

Find out a buyer, ask him to pay the amount through crossed demand draft to the bank in your favour, collect surplus amount.  Either you can give authorisation to him to collect the documents are get the document yourself and deliver to buye with your sale deed as link document.

Sir can i put the property on rent. And is their no way to get a concession. we have paid around Rs.40 lakhs on interset till now. 

Is there any way to retain the property, so that the bank could be pushed for a settlement

There is no bar in letting out the property.

There are many ways, and you shoud commence negotiating with the unwilling banker and convince them to strike for a deal.  Even they can propose a deal if you are prepared to close the entire loan in one lumpsum before a stipulated period.

As far as I know you can not have the cake and it too.  The bank employees are not dumb.  They have got their own external agents / engineers who has to periodically report a market value.  They have not been bringing pressures because RBI was previously not that much strict, and as the property value is more.  Though you are giving your own estimate, one can be sure it costs minimum of 5o lakhs.  Catch hold of a good client of theirs and commence negotiaing. Please remember you have paid interest because you have used.  Just imagine how much you have benefitted by the loan, and value of the money when you have taken and present value.  You have paid the interest because you have used the principal.  Because you have delayed you are still paying.  The maximum concession they can offer is waiving penal rate and compound interest and it may come around Rs.5 lakhs in total.  They may afford to sacrifice that much and not more. (The interest rate they are charging is nominal for educational loans)