• How to remove home loan liability after divorce

I and my ex husband had purchased a house on joint loan. The EMI was deducted equally from our accounts before divorce.  During divorce process the lawyer suggested to make a release deed as my ex wanted to keep the property.  I have relinquished my rights on the property by execution of release deed.  He has paid me all dues against the same. However the loan still has me as co borrower. I don't want to hold this liability. what should I do? They won't give consent on any procedure that makes them spend money such as loan transfer or closure. Please suggest me a way out.
Asked 1 year ago in Property Law from Ahmedabad, Gujarat
Religion: Christian
 Give a letter addressed to the housing finance company along with a copy of  the release deed and informing the concerned that you have relinquished your rights in favour of your ex-husband in respect of the property in which you were a co-borrower and request for your name to be removed as a co-borrower.
Shashidhar S. Sastry
Advocate, Bangalore
1232 Answers
59 Consultations
5.0 on 5.0
file a declaratory suit for discharge of liability from the date of divorce. you no longer have interest in the property. 
Shivendra Pratap Singh
Advocate, Lucknow
2729 Answers
41 Consultations
4.9 on 5.0
Meet the manager of the bank and pass the information regarding the divorce and relinquishment deed. Or send a notice to the bank  with copies of the relinquishment deed and divorce decree and request for your name to be removed as a co-borrower. If the bank is not amenable file a declaration suit for discharging the liability
Ajay N S
Advocate, Ernakulam
1905 Answers
19 Consultations
5.0 on 5.0
1) you should not have executed release deed unless your husband agreed to remove your name as co borrower

2)as on date you continue to be lliable for repayment of loan 

3) your husband has to make application to bank to remove your name as co borrower 

4) enclose copy of divorce decree

5) only if bank agrees would your name be removed as co borrower 

6) in the alternative your husband can repay the loan to bank and close the loan 

7) there is no other way out to remove your name as co borrower 
Ajay Sethi
Advocate, Mumbai
23119 Answers
1214 Consultations
5.0 on 5.0
1. Well, you have done a mistake of releasing your share in the property without taking the permission of bank, more so, when you were the co-borrower.
2. Immediately meet the banking people and ask for their co-operation in removing your name. Forget the extra cost as if bank refused to co-operate your hassles won't be over in a hurry.
Devajyoti Barman
Advocate, Kolkata
5157 Answers
54 Consultations
4.9 on 5.0
1. You have relinquished your share in the property in favour of your husband, but the relinquishment does not mitigate or abrogate your liability to repay the loan through EMIs.

2. If you wish to get rid of the liability then your husband has to apply to the bank to make himself as the sole borrower, which the bank may or may not accept. The practice of banks is to reject outrightly the request for post loan restructuring of the substitution of borrower or co-borrower. So you may not be able to get rid of your liability. 
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0
You have relinquished your rights in the property very hastily without consulting the bank about this and formalities.  In fact since you are also liable for the housing loan repayment, you cannot transfer the property in your name to any other person without clearing your liability.  This relinquishment is also transfer from your name to some other person. However this relinquishment shall not entitle you to be absolved from the liability.
Now you can ask your husband to apply for discharging you from the liability on the basis of divorce decree and your registered release deed and he may give an undertaking to repay the restructured loan fully by himself, the discretion of bank will decide the fate of this issue. He can move an application to remove your name from the co-borrower alternately he may repay the loan and close it.
Look for an amicable settlement of this issue somehow.  
T Kalaiselvan
Advocate, Vellore
13934 Answers
127 Consultations
5.0 on 5.0
1. You have executed a release deed of your share of the property but you have not got yourself released as a co-borrower,

2. as a consequence, in case of any default in payment of EMI by your husband,you are liable to pay your share of the EMIs as the co-borrower of the said housing loan,

3. You have not taken a prudent step by relinquishing the right on the property but not getting yourself relinquished from the liability to pay the EMIs as a co-borrower,

4. Ask your husband to give a letter joint letter along with you to to the lending Bank stating that he is now to be considered as the sole borrower of the said housing loan since you have already relinquished your share of the jointly held property in his name,

5. Collect a letter from the Bank releasing you as the co-borrower of the joint loan.
Krishna Kishore Ganguly
Advocate, Kolkata
12043 Answers
228 Consultations
5.0 on 5.0
Hi, you have to sent a letter to the bank stating that you have already released the right of your property and you are not a legally wedded wife so remove your name as co-borrower, Bank may accept your request.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0

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