mortgage of property in bank
Uday kumar
(Querist) 04 July 2011
This query is : Resolved
Hi,
In April 2010 we received a notice from bank that my grandmother was guaranter in a loan furnished in 1985.In this loan a paper of sale deed is mortgage in favour of loan and loany becomes defaulter So,bank send this notice for settlement of loan.This is the first notice from bank.After, receiving this notice we enquiry about that property we found that this property was recorded in the name of other person instead of my grandmother according to local Karamchari record and in half portion of that said land a house persent of other person and he shows a fake paper of sale deed of that said property .Then how this property was recovered please help me?Is bank responsible for recovery of this propety?Before recovery we settle loan with bank or not,please help me?If bank is responsible for recovery then what type of action take against bank .If not then what can i do for recovery?
Please, mention appropriate laws and acts if possible?
thank's
malipeddi jaggarao
(Expert) 05 July 2011
If your grand mother was guarantor in a Bank loan and her property is not mortgaged to the Bank what is your query? What is that other person in whose name the property exists? He should be the borrower or joint guarantor. In such if he created a mortgage on the property, the subsequent transfers of the title are subject to the mortgage and the Bank's right prevails over the subsequent buyers. But Bank is not responsible for either handing over the property or trace the document etc. If the security documents are in force, the Bank has right to recover the money either from the borrower/joint borrowers/guarantor/guarantors.
RAJU O.F.,
(Expert) 06 July 2011
You did not mention the nature of the notice received from the bank. If the mortgage was in 1985 and if any renewal documents are not executed, then the loan is time-barred and hence the bank cannot file fresh suit nor can they take action for sale of mortgaged property under the SARFAESI Act. You have to find out the purpose of the notice and ascertain as to whether any suit is already filed and pending or any execution petition is pending. Also obtain encumbrance certificate for the said property for the last 30 years to ascertain the charges and transactions on that property.
