Mortgage by deposit of title deeds not registered
Ashok karumanchi
(Querist) 31 August 2015
This query is : Resolved
My grand mother gifted 5 flats in Vijayawada to my dad on June 2012 by registered gift deeds. He mortgaged those 5 flats to bank by way of deposit of title deeds in July 2012. His loan is declared NPA on July 2014 and sub sequently they bank invoked SARFAESI act. Unfortunately my dad died on 28-02-2015. The flats were not sold out by bank till now. They asking mine and my brother's signatures. What should we do. We don't know about the mortgage. And it is not registered . They harassing by calling and frequent visits to our home. is the unregistered mortgage is valid ?. Any ways are available to save our flats from bankers. At certain point we even told the bankers that go for auction but they still coming to my home asking to pay loan. I urged with them that " as my home not mortgaged you have no right to come to my home, go and sell those 5 flats and recover ur money". We already in depression with my dad death please suggest us the best ways to get rid of bankers.
Anirudh
(Expert) 31 August 2015
Who is having the Title Deeds (Original documents) of the 5 flats?
Dr J C Vashista
(Expert) 31 August 2015
Some important information qua mortgage of the 5 flats with the Bank is missing from your query. The banks can (and shall) not advance a loan and proceed in the absence of proper "Motrgage Deed", please note.
Consult and engage a local lawyer for proper analyses, guidance and proceeding.
malipeddi jaggarao
(Expert) 31 August 2015
Many important points are involved in the issue.
1) Valid mortgage is created by depositing the title deeds of the owner of the property for securing loan. Do not entertain in your mind that since mortgage is not registered it is not valid. This type of mortgage is called equitable mortgage only two important aspects are to be fulfilled - delivery of title deeds - with an intention to secure loan for self or for third party (if the owner guarantees such third party loan).
2) Bank is consulting you, as they have to make the legal heirs as parties before the debt becomes due. Otherwise they will loose the right of recovery personally against the legal heirs. Hence they are contacting you.
3) What is the nature of loan? The limitation (for debt to become time-barred) depends upon the nature of loan. If it Term Loan limitation is long and different. If it is demand loan the limitation is 3 years from last acknowledgement. In such case since your father died, the Bank has to take your signatures within 3 years of last acknowledgement, otherwise they will loose right of recovery against the legal heirs or legal heirs property.
4) You say that you are depression. It does not deliver any benefit to you. What is the total market value of these 5 flats and what is the liability of your father? If the property value is more, if you allow the bank to go for auction, you will loose everything. Emotions will not work. Ascertain the real value of property vis-s-vis liability and if it is benefitial, you legal heirs sign the papers so that you will be given time and you can repay the amount and redeem the property. If liability is more than the value of these flats, better not to sign any documents so that you can escape responsibility of repayment. Whether this route is proper or not you have to think on your own as repayment of deceased ancestors is a pious obligation and you have choice either to fulfil it or not. In case of need contact me by clicking the Green button.
Kumar Doab
(Expert) 31 August 2015
Certainly you should avail the professional help of an able counsel well versed with such/family/property/revenue/civil matters and understand all options and merits and remedies.
The value of the flats might be much more than debt, and you shall gain by clearing the debt, arranging a buyer etc!.
Rajendra K Goyal
(Expert) 31 August 2015
Agree with the expert malipeddi jaggarao.
T. Kalaiselvan, Advocate
(Expert) 05 September 2015
An excellent explanation by expert Mr. Malipeddi Jagga Rao. The information and opinion shared by him is really helpful even for the experts who are not much aware of banking procedures especially with regard to several types of loan. Appreciable service to mankind with his experience and vision to help fellow human being.
malipeddi jaggarao
(Expert) 05 September 2015
Thanks Mr.Kalaiselvanji for your feelings. But I am deserved for such a great praise. We all believe that we are in this comfortable positions because of the society. When the time comes to give back to it, we all feel it is our duty. Nothing else.
