Appu (nil) 17 September 2011

Housing loan

sir,
Can we transfer my relative's housing loan to my account,if we have the consent of both parties.???
Let me describe ...
Earlier(i.e 5 years ago),my father transferred our 13 cent land to that relative for taking loan for us .....
This was done by my father(without asking family members...) at that time for getting maximum amount as loan because relative was a socially well known person and
familiar to bank officials...Loan amount was about Rs. 6.5 lakh and date of maturity is 30 June,2024..The relative asked 2 lakhs for
his use and my father spent rest 4.5 lakhs on construction of house...Now,my father is giving the interest as in the proportion to them and they pay
interest as total interest along with their proportionate interest per month...But,now they are willing to pay 2 lakh Rs. as in full to pay off their liability and
wish to hand over loan liablity to us.....Eventhough,my father is liable to pay the total interest ,but I think that there is a high chance of risk,if the relative may
slip his stand or lose present attachment with us in future...i.e Even if my father is paying total interest ,they are the owner in records or legal terms....
Now,I am worried over my father's irrational decision at that time...Suggest solutions for this problem for avoiding risk etc...?

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3 Replies

RAJU O.F., (Advocate) 17 September 2011

You may purchase the house from your relative, with the consent of the mortgagee bank and only if the bank allow to continue the housing loan in your name. It is very rare for the banks to do such favour.

Sudhir Kumar, Advocate (Advocate) 06 April 2013

advise of Mr Raju will give you least complications.

sanjay kumar (BE/ LLM in Corporate Laws) 12 April 2013

From your informations, it comes out :-

1.Your father transferred some land to your relative who was of creditworthy nature.

2.You relative mortagaged the land to the bank and a loan of Rs.6.5 Lakhs was taken in the name of your relative.

3.Your relative kept Rs.2.00 Lakhs out of the loan and passed off the balance Rs.4.5 Lakhs to your father.

4. You relative and your father are paying the instalments in proportions i.e. Rs.2 Lakhs and Rs.4.5 Lakh.Now your relative wants to return Rs.2.00 Lakh to your father. This means that entire loan is to be paid by your father.

5.And finally, the land which is now in the name of your relative is mortgaged to the Bank.

And now you want the loan to be transferred to your fathers name. The mortagaged Land is in the name of your Relative now.

Please confirm whether the above facts are correct.

From the brief information you have given, even if the entire loan is transferred to your father, he will not become the owner of the land which has been mortagaged as it is in the name(?) of your relative.

But anyway first confirm the above reading of he case.