LAW Courses
LAW Courses

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Srikanth   09 June 2020

House Loan

Hi Sir, Madam,

My father has been taken some loan amount from the bank for house construction 7 years back. Now the problem is recently My father expired and there is no insurance for death only house insurance available is there any way to wave off loan kindly help


 5 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     09 June 2020

No.  The legal heirs are not only for assets but also for liabilities.  So the legal heirs are liable to pay the bank loan.  

P. Venu (Advocate)     09 June 2020

The legal heirs are liable for the liabilities of the late father limited to the assets they have inherited.

Srikanth   09 June 2020

thanks for the update

G.L.N. Prasad (Retired employee.)     10 June 2020

Once again go to the bank and check whether the borrower has taken Group insurance policy for home loans.  If you do not want to have ownership, you can inform the bank so that they can auction the property and keep that amount in deposit for distribution of legal heirs, as a waiver is not possible when there is adequate security.

The waiver is the last recourse in absence of any security and when the chances of recovery are NIL.

Dr J C Vashista (Lawyer)     11 June 2020

Originally posted by : Srikanth
Hi Sir, Madam, My father has been taken some loan amount from the bank for house construction 7 years back. Now the problem is recently My father expired and there is no insurance for death only house insurance available is there any way to wave off loan kindly help

Whether the Bank has retained title documents hypotheticated or some mortgage deed was executed by your father ? 

Anyways you (alongwith other legal representatives of deceased / borrower) are liable to refund the outstanding amount as the bank have a charge over the property.

How does house insurance intervene between the outstanding amount vis-a-vis LRs of borrower ?

What is the basis of waiving off the outstanding loan amount, which do not affect death of borrower?

 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Post a Suggestion for LCI Team
Post a Legal Query