Property mortgaged borrower died how can legal heirs claim property

765 votes

In law, the inheritors if the property are liable to repay the loan. Therefore, all the inheritors are to jointly and severally pay off the loan. As for the inheritor who cannot contribute, you should get a relinquishment deed from him in favor of the remaining inheritors so that he doesn't receive his share.

Advocate Angad Mehta LawRato

684 votes

Respected Sir/Madam,
Just I have reached at my office and read your massage.
Subject : a co-operative bank sanctioned a personal loan against the deposit of original title deed.
The following legal steps : 1. To send notice to both the legal heirs of mortgaged property and
surviving guarantor.
2. If pleaded inability to repay the loan.
3. We should move to the concern court and file Suit for Recovery.
4.Then as per Hon'ble court Direction it will auction the property and the highest bidder who pays bank's dues will be handed over the deed.
5. And finally Bank will recover due amount.

Advocate Manish Kumar LawRato

605 votes

The bank can legally take physical possession of the property and auction it as the loan is a secured loan and the property is a secured asset . The surviving guarantor is liable to pay the due amount . Very soon the bank will serve the guarantor and inheritors with notices under the sarfaesi act for taking over the possession of the property . In such a situation , the inheritors should approach the debt recovery tribunal and get a stay order to stop the bank from taking over the possession of the property and ask for time to pay the due amount . You can also ask the court to waive off interest and penal charges imposed by the bank .

Advocate Suneet Bhardwaj LawRato