A bank cannot property which is mortgaged to other bank
better find buyer for mortgaged properties and repay bank loan
Unable to pay back the loan of a bank.
My father have 3 property, for 3 property he took loan against mortgage from bank A. But now we are unable to pay loan so the account became NPA, also they put our property to sarfasi act, so we planned to ask the bank to take our property, but we know after selling three property also, loan property will not recovered. His bank balance is almost nil, only thing he will be left is his flat, which is also in mortgage from different bank B. Now the question is could bank A can claim the flat property which is in mortgage with other bank?
Asked 6 years ago in Property Law
Religion: Hindu
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14 Answers
See the bank can seek attachment of that flat but the first charge shall be of first bank. The second bank.can seek order to attach property and bank account.
No Bank A cannot claim the property mortgaged with other bank.
What happen if bank cannot recover it's full amount by selling the mortgage property? For remaining amount maximum what bank can do? As I told my father don't have any other property or bank balance. Basically he is bankrupt now.
Asked 6 years ago
They can put second charge on the property with the order of court which is not mortgaged.
1. After the selling of the mortgaged property the creditor can file regular suit to recover the money.
2. In the said civil suit if the decree is passed the plaintiff can go for attachment of the property of the defendant and sell it to recover the balance amount.
3. However the said decree would be subject to charge on the property on which the other ban had prior charge.
bank cannot attach other bank mortgage property.
Bank would sue your father to recover the balance loan amount
if your father is bankrupt bank would not be able to recover the shortfall amount
1. Bank cannot resort to provisions of SARFAESI Act for a property that is not mortgaged with it to secure the loan.
2. If the loan amount is not made up even after the auction of properties then bank will be at liberty to file a suit for recovery of money, and if the court decrees the suit in favour of bank then latter can execute the decree against the assets of your father.
If your father is not able to pay the loan it will be good idea to go for the bankruptcy and file it and that the court declared bankrupt so that the path property available may be taken by the bank is Lee and there will be no outstanding left after the recovery from the properties if any amount is outstanding even after the disposing of the property by the financing authorities and there will be no burden on the families
Bank can only use secured debt in sarfesi Act. It can't use the another bank property if it was not mortgaged for that debt.
No, rest amount bank will claim by filling recovery suit, and once order granted by court and still not paid than court will attach his falt to recover amount.
If your father will become bankrupt after SURFAESI then bank cannot claim anything from your father after that even if the cost of property doesn't cover the loan amount.
The action taken by bank will be on the property that is available on the name of the borrower, hence if this property's auction sale consideration amount is not sufficient to discharge the entire loan interest then the bank may bring the borrower's other property also to auction for the balance or deficit amount.
If the other property is already mortgaged to another bank for loan, then the balance amount after selling that property, if any, may be taken by this bank provided it has followed the procedures to acquire possession of that property. as per provision of law.
If the auction sale consideration amount is not sufficient to recover the loan amount and its interest and there are no other properties available with the borrower then the bank may initiate legal action as per provision of law in furtherance.