Home loan sanction
Devidaskshetty
(Querist) 16 August 2016
This query is : Resolved
Whether a Bank can sanction home loan on a property which is already under mortgage of another financial institution.
R.K Nanda
(Expert) 16 August 2016
No is the answer.
Rajendra K Goyal
(Expert) 16 August 2016
Yes, is the reply, the Bank having mortgaged the property first would have first charge. In case of auction any surplus would pass on to second Bank, till there exist pari-pasu charge agreement between the Banks.
Kumar Doab
(Expert) 16 August 2016
Mr. Goyal has illustrated for your benefit.
Raj Kumar Makkad
(Expert) 17 August 2016
Its the sweet will and whims of the bank. It has to see its own interest and no law can force it to grant loan on the property already mortgaged,
Devidaskshetty
(Querist) 15 December 2016
I'm confused with different opinions. Thank you one and all for responding.
Devidaskshetty
(Querist) 15 December 2016
I'm confused with different opinions. Thank you one and all for responding.
Devidaskshetty
(Querist) 15 December 2016
How to learn about the mortgage of another bank before purchasing the property from the builder. In case the builder says that the property is clear in the agreement with the hiding of mortgage, and a bank sanctions homeloan on that property who should be held responsible and accountable?
Devidaskshetty
(Querist) 15 December 2016
How to learn about the mortgage of another bank before purchasing the property from the builder. In case the builder says that the property is clear in the agreement with the hiding of mortgage, and a bank sanctions homeloan on that property who should be held responsible and accountable?
Devidaskshetty
(Querist) 15 December 2016
How to learn about the mortgage of another bank before purchasing the property from the builder. In case the builder says that the property is clear in the agreement with the hiding of mortgage, and a bank sanctions homeloan on that property who should be held responsible and accountable?
Rajendra K Goyal
(Expert) 15 December 2016
Generally Bank obtains confirmation before sanctioning loan to property under construction / otherwise from the builder that the property is free from all encumbrances / no loan for the project has been taken from any Bank.
If Builder has given such letter, and the fact is otherwise, FIR for cheating may be lodged against the builder.
Devidaskshetty
(Querist) 20 July 2017
Thank you so much for the response. The bank has issued notice under SARFAES act year ago and nothing is heard yet. The property is still not registered in my name and how the bank can take over the property is still to be seen. Valuable advice is solicited from your good selves.
Kumar Doab
(Expert) 20 July 2017
'Buyer Beware' applies to property deals.
It shall be appropriate to get proper legal opinion from a very able local senior counsel of unshakable repute and integrity specializing in revenue/property/civil matters before signing or making payment.
This may cost some FEE but can defend long term interest and hard earned monies.
Kumar Doab
(Expert) 20 July 2017
If you are the buyer get the seller/builder and make it pay the debt of bank(s).
Devidaskshetty
(Querist) 07 August 2017
Thanks a lot for all of your valuable response.
