Real Estate India: What would be the standard procedure to be followed to repay the housing loan?
Question asked by Mr Sunny Sureen:
Dear Vatsala,
Few years back my father had applied for a loan from LIC Housing Finance for construction( extension ) of his existing property. The papers of existing house were kept as a security. We are living in the same house till now. The loan was granted and it is being repaid in the form of EMIs. During the 1st year a part of the EMI was adjust for a premium payment of Insurance policy started at the time of approval of the loan. But it was discontinued due to financial constraints and the policy got lapsed.
A month back my father passed away and a major part of the loan is still outstanding. I am getting calls from the institution to pay the EMIs due since past few months. I told them the situation on phone. Now the institution is suggesting me to continue paying the EMIs till the entire loan is repaid.
Please suggest me what would be the standard procedure to be followed in this situation, so that later on I dont face any restrictions/hassles to get the papers of the property back.
For e.g. Should I transfer the loan in my name OR Get the entire loan amount repaid immediately OR Continue to the pay the EMIs for the remaining loan period.
Thanks and Regards
Mr Sunny Sureen
Vatsala Answers:
The obligation to pay the debts of the deceased falls upon the legal heirs. You can get a receipt for the repayment of the EMI in your name periodically. The bank is duty bound to hand over the documents to the legal heirs on discharge of the loan, whether it is one lump sum or repaid in installments. You are advised to contact the bank to check if there are any formalities that the bank requires in terms of paper work.
Vatsala
http://www.atoneplace.com
For more information, kindly visit at Real Estate India or Online Real Estate Video.
Dear Vatsala,
Few years back my father had applied for a loan from LIC Housing Finance for construction( extension ) of his existing property. The papers of existing house were kept as a security. We are living in the same house till now. The loan was granted and it is being repaid in the form of EMIs. During the 1st year a part of the EMI was adjust for a premium payment of Insurance policy started at the time of approval of the loan. But it was discontinued due to financial constraints and the policy got lapsed.
A month back my father passed away and a major part of the loan is still outstanding. I am getting calls from the institution to pay the EMIs due since past few months. I told them the situation on phone. Now the institution is suggesting me to continue paying the EMIs till the entire loan is repaid.
Please suggest me what would be the standard procedure to be followed in this situation, so that later on I dont face any restrictions/hassles to get the papers of the property back.
For e.g. Should I transfer the loan in my name OR Get the entire loan amount repaid immediately OR Continue to the pay the EMIs for the remaining loan period.
Thanks and Regards
Mr Sunny Sureen
Vatsala Answers:
The obligation to pay the debts of the deceased falls upon the legal heirs. You can get a receipt for the repayment of the EMI in your name periodically. The bank is duty bound to hand over the documents to the legal heirs on discharge of the loan, whether it is one lump sum or repaid in installments. You are advised to contact the bank to check if there are any formalities that the bank requires in terms of paper work.
Vatsala
http://www.atoneplace.com
For more information, kindly visit at Real Estate India or Online Real Estate Video.