RR Netha (ff) 20 May 2012

House loan

Hi Sir/madam - I have taken home loan and purchased the flat in Hyd in 2006. I paid the EMI's regularly for 3 yrs and after that didnt pay due to financial problems. Bank is going for Auction on property in June. They are showing my default amount is 32 Lakh and reserve price is 20 Lakch. Now, my question is in case bank decided to sell my property less than 32 Lakh, do they have any authority/power to recover the remaining amount from me. As I am still in poor financial condition i cannot pay that amount to Bank.

Please advise me

Regards,

RR Netha

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1 Replies

S Jadhav 98336 98330 (Jadhav & Associates) 21 May 2012

Sorry to hear about your condition.

If you feel the reserve price is lower than what you could get for your flat, then please ask your prospective buyer to participate in the auction and buy it at a market rate.

Alternatively, you may ask the buyer to make the payment of the dues till date to the bank and the prospective buyer can take a housing loan if required for the balance portion. By using these methods, you will be able to get better value for your flat and lessent the burden on yourself.

But why did you not discuss with the bank earlier to see how you could have done all this before they went for auction?

S Jadhav