Borrower absconding and EMI is paid by Dad, what are the options?
2 years ago
My Brother's Property (purchased by Dad 25 years before) is on Home Loan Mortgage with Dad as guarantor.
Brother went absconding and there is no way to reach him. Dad is paying the EMI for the loan for the past three years.
To get over the EMI Burden Dad has found a Buyer for the property but Bank denied support for any action. They want my brother to be available. Dad was of opinion that when he stops EMI payment, Bank can take over the property and register it to the Buyer (Charity Organisation) and get the loan amount adjusted, repay the excess amount.
Given this scenario, please advise on the available options
First go to the police station and receive a declaration from the police station that your brother cannot be traced then report the same to the bank and wait for their reply. If the reply is useful you can proceed with it or else just stop paying the EMI and let the bank proceed with their course of action
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
You may first approach the police station and receive a declaration from the police station that your brother cannot be traced then report the same to the bank and see what they say. You can talk out your situation to the bank if they are co-operative then well and good or you can just stop paying the EMI and let the bank proceed with their course of action
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If your brother is absconding for more than 7 years and whereabouts is not known then get a declaration to that effect he is dead. On the basis of such decree you may proceed otherwise you may also work out the proposed take over of the property and registering the same in the name of charity organization.
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The bank should cooperate, try to speak to them else stop paying the EMI and let them auction the property.
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