Mortgage clearance
roger fredrick
(Querist) 19 February 2012
This query is : Resolved
Dear experts I had an OD account and due losses it was declared NPA three years back. A suit was filed and decreed and the process of auction is underway. AS I got some funds through the sale of ancestral property I negotiated with the bank for settlement. the principal is 12 lacs now withe interest they are claiming 16 lacs to stop the auction and bank says that my collateral would feth 20 lacs in auction. I am prepared to settle for 13 lacs . But bank is not agreeing for that amount. Meanwhile when I sought the help of my friend who is a chartered accountant he suggested that even if the property is sold in auction the purchaser has to buy the property with mortgage and bank would like to settle with me rather than pursuing the process of auction. I have only 13 lacs with me. Iam confused please advice.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 19 February 2012
Please contact a local advocate conversant with such matters and you can get breathing time by taking objection through court for which no of grounds will be available.
And in the mean time keep conversation open for final settlement.
RAJU O.F.,
(Expert) 21 February 2012
It is not true that the purchaser of property by auctioin from bank would be subject to mortgage. When bank is selling the property it would be free from the said banks mortgage. If possible have an amicable settlement with bank. Or you have to fight in DRT for stay of auction and for adjudication of the debt.
roger fredrick
(Querist) 22 February 2012
Raju sir thanks for the feed back.Do you mean to say that with the selling of property in auction it results in the cancellation of mortgage? When I discussed this reply with my chartered accountant friend he says that mortgage cannot be cancelled unilaterally i.e by bank and he emphasised the theory that once a mortgage always a mortgage. I did not understand this concept. Please explain. more ever bank is forcing me to settle for 16 lacs to avoid auction and they are saying that interest is mounting and if I dont budge now they may demand more later.
