How simple morgage interest is calculated

Did you issue a legal notice for redemption of mortgage after expiry of 3 years of the loan amount? 

There must be some other term and condition in the mortgage deed regarding recovery of loan and interest. Show the document to a local prudent lawyer for better appreciation of facts.

There is no question of compounding the interest on loan amount.

Did you issue a legal notice for redemption of mortgage after expiry of 3 years of the loan amount? 

There must be some other term and condition in the mortgage deed regarding recovery of loan and interest. Show the document to a local prudent lawyer for better appreciation of facts.

There is no question of compounding the interest on loan amount.

Hello Sir,

No, we haven't given any legal notice so far. He is our relative and prayed us to wait. The document says, "if the principal amount and interest is not paid by 01-08-2012, we have a right to extract that amount from the morgage property".

Can you please please tell me what would be our total recovery amount?

Thank you for your time.

Better consult a local Lawyer with the document. Normally a Mortgage is valid for 12 years. However, the underlying debt is horribly time barred as the last date for payment of the amount was almost 6 years back. When the borrower was not paying, you should have caused to issue a legal notice immediately on due date and proceeded for further legal action, notwithstanding the fact he is your relative. There are no exceptions from Limitation Act for transactions between relatives.

Without studying the document based on which the loan is given, it is impossible to give opinion. Therefore, please do consult a Lawyer in your area with the relevant documents.

Why you want to go for a recovery suit when you have the option of seeking foreclosure of the mortgage?