Can wife sell dead husband's property to pay loan? Can bank deny it?
My neighbour's husband passed away six months ago. He had overdrawn around 10 lakhs from his current account for business expenses and placed a commercial property he owned as collateral.
Now his widow doesn't have the funds to service the loan- she was a co-borrower. Is there an option to sell the property herself and pay off the loan? Will the bank agree and is there any legal method of doing this?
Please provide me with free legal advice.
We need a few more details to answer this in a better way:
1. Was the property purchased by the deceased in joint name with his wife?
2. Whether the deceased executed any 'Will' in favour of his wife?.
3. Are there any other legal heirs except his wife?
Further I understand that the deceased mortgaged the property in the bank and the liability of paying loan goes to his wife. In that case she is legally bound to pay off the loan amount failing on which bank can sell the property through Auction. Thus legally she is bound between the boundaries.
My Advise:- Explore the market rates of the property. If the market rates of the property is greater than that of the loan amount then sell the property to someone who is ready to pay off the loan amount, give all funds to her and then she can pay off the loan, saving the balance funds with her.
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