Bank Mortgage Legal Issues
My house property is already under mortgage to Bank for availing housing loan. However I wish to execute a will in favour of my family. The property is in my individual name settled by my mother. what is the procedure I should follow to execute a will. What are the permissions required when the property is already mortgaged in favour of the bank and MODTD is in force.
you have mortgaged the property in favour of the bank so tomorrow if you want to make a will of the same, you will have to satisfy the entire loan of the bank following which the property will be free of all the encumbrances . This is only suggested so that your family members do not face any legal hassels in the future when they seek the property in their name simultaneously when the property is mortgaged to the bank.
Well you are still the registered owner of the property even if the same is lying mortgaged. There is no bar in creating the WILL. Even there is no need to mention the fact of same lying mortgaged with the bank in the WILL. Execute the WILL in usual way.
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