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Would Bank Seize Property of Widowed Housewife If Her Husbands Died ?
3 years ago
Hello,
I have recently lost my father. My father took a secured from an NBFC mortgaging his shop. My mother is the legal heir of that shop.she is housewife and can't repay the loan. That shop is also her only asset. What would happen if we can't repy the loan?
Shreesh Chadha
Responded 3 years ago
A.1) Your best bet is to resist actions taken by the NBFC. You will receive a legal notice from the NBFC if your account with the NBFC is declared as NPA. However, that does not happen immediately and you will have have opportunity at SMA 0,1,2 stages as well.
2) Your mother is liable for the debts occurring on the shop including the loan amount. Not paying is not an option, and you should start arranging funds if you want to keep the shop.
3) Contrary to what has been stated above, you cannot sell this shop without an NOC from the NBFC. Since the property is mortgaged, original papers are with the NBFC, do not sell mortgaged property as that transaction may be fraudulent.
4) If the only way to raise funds is to sell the property, engage an Advocate to send a representation to the NBFC regarding claiming NOC for sale of property and thereafter pay the amount due by you with interest. This will save the NBFC a lot of trouble and will also save you a lot of time and money.
Regards
Shreesh Chadha
2) Your mother is liable for the debts occurring on the shop including the loan amount. Not paying is not an option, and you should start arranging funds if you want to keep the shop.
3) Contrary to what has been stated above, you cannot sell this shop without an NOC from the NBFC. Since the property is mortgaged, original papers are with the NBFC, do not sell mortgaged property as that transaction may be fraudulent.
4) If the only way to raise funds is to sell the property, engage an Advocate to send a representation to the NBFC regarding claiming NOC for sale of property and thereafter pay the amount due by you with interest. This will save the NBFC a lot of trouble and will also save you a lot of time and money.
Regards
Shreesh Chadha
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A.Your mother resist before Debt Recovery Tribunal.
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Jagannath S Pawar
Responded 3 years ago
A.Successors to the property are liable to repay the loanl unless provided otherwise.
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A.I have gone through your query in detail.
Sorry to hear the demise of your father. As per the Banking rules Bank/ NBFC can Seize Property & Sell it in auction. But kindly go through the below rules you can find a practical solution from what is given below.
1) As per my knowledge since 2005 all the banks and NBFC have started giving any kind of loan ONLY under Insurance Protection Plan. So by default even this property must be having insured loan....
2) As you are not mentioned NBFC – Name, I am unable to get which is this NBFC and in which Branch, City, State etc... Also search for the loan agreement in your home are the documents kept by your father in the bank locker for every keeps the documents Xerox. If you get the copy of Insurance Mortgage Loan then you need not have to worry you can directly give the photocopy of the same to the bank and get the balance EMI waived off and it will get directly transferred in your mother's name....
3) Incase if you are NOT having the insured loan then the best way would be to sale the shop as per the market price and then pay the bank balance, close the Loan account and the balance amount from selling the shop can be kept by your mother and you.
4) But, do it fast as if the bank people will declare NPA- Non Performing Asset, then they may try to sell it in the auction and you all will be in LOSS.... So better ways sell the shop by yourself and clear of the banking dues..... at last moment you can do a some settlement regarding the interest rates as your father is no more and the bank will also accept the same...
5) But once again reminding you DO NOT DELAY in finding the insurance paper documents at your dad's office or home and if you are unable to get it approach the bank from where the loan was taken see if there is insured loan and in the meantime am a new buyer for the shop and sell it... Avoid legal banking issues atleast at this stage.
If you realize my professional skills, the time & efforts put in by me needs to be truly appreciated, and then Please “CLICK MY LIKES/ THUMBS UP/GIFT” button shown below this reply format & also CLICK/ WRITE a “REVIEW” in 5 star as I have answered your query in detail. Hope this information is useful
ADV. ANISH PALKAR (High Court)
Sorry to hear the demise of your father. As per the Banking rules Bank/ NBFC can Seize Property & Sell it in auction. But kindly go through the below rules you can find a practical solution from what is given below.
1) As per my knowledge since 2005 all the banks and NBFC have started giving any kind of loan ONLY under Insurance Protection Plan. So by default even this property must be having insured loan....
2) As you are not mentioned NBFC – Name, I am unable to get which is this NBFC and in which Branch, City, State etc... Also search for the loan agreement in your home are the documents kept by your father in the bank locker for every keeps the documents Xerox. If you get the copy of Insurance Mortgage Loan then you need not have to worry you can directly give the photocopy of the same to the bank and get the balance EMI waived off and it will get directly transferred in your mother's name....
3) Incase if you are NOT having the insured loan then the best way would be to sale the shop as per the market price and then pay the bank balance, close the Loan account and the balance amount from selling the shop can be kept by your mother and you.
4) But, do it fast as if the bank people will declare NPA- Non Performing Asset, then they may try to sell it in the auction and you all will be in LOSS.... So better ways sell the shop by yourself and clear of the banking dues..... at last moment you can do a some settlement regarding the interest rates as your father is no more and the bank will also accept the same...
5) But once again reminding you DO NOT DELAY in finding the insurance paper documents at your dad's office or home and if you are unable to get it approach the bank from where the loan was taken see if there is insured loan and in the meantime am a new buyer for the shop and sell it... Avoid legal banking issues atleast at this stage.
If you realize my professional skills, the time & efforts put in by me needs to be truly appreciated, and then Please “CLICK MY LIKES/ THUMBS UP/GIFT” button shown below this reply format & also CLICK/ WRITE a “REVIEW” in 5 star as I have answered your query in detail. Hope this information is useful
ADV. ANISH PALKAR (High Court)
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