mortgages..........
This query is : Resolved
14 June 2008
Charges can be created for one property from more then 1 banks .\\????
explain with example pls
explain with example pls
19 June 2008
Legally it is possible and allowed..
Practically 2nd mortgages are not preferred by banks.....since the firt mortgager has first charge(Security) and the second bank has second Charge...which increases the risk of the second bank.
If there is a significant difference between the market value of the security and the first loan, second mortgage is posssible..
For example if the first mortgage loan is Rs. 10 lakhs and security value is Rs. 11 lakhs.....the second mortgage wont be possible....
if the value of the security is Rs. 1 crore....second mortgage is possible...since the risk is low..
Practically 2nd mortgages are not preferred by banks.....since the firt mortgager has first charge(Security) and the second bank has second Charge...which increases the risk of the second bank.
If there is a significant difference between the market value of the security and the first loan, second mortgage is posssible..
For example if the first mortgage loan is Rs. 10 lakhs and security value is Rs. 11 lakhs.....the second mortgage wont be possible....
if the value of the security is Rs. 1 crore....second mortgage is possible...since the risk is low..
Dhirajlal Rambhia
(Expert)
16 June 2023
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