Legal Question in Banking Law in India

Clarification House Loan

Hi, I am working in Private sector job. 2yrs back i buy the house for that i took the houseloan from LIC it around 21lacks(loan amount).That time house cost was it's around 29lacks inculding registration.so i spend 8lacks my own money excluding bank loan. and monthly am paying(EMI) 21,136/-(P.M)

Now am planning to sell my house but for this time real estate market was done in hyd at the same time my jobs also not secure.

Clarification

1.If any case any layoff happen in my organization how i can pay the amount? i don't have any fiancial support

2.If i didn't pay monthly installement and leave the house what will happend and what decission will take bank

3. if i leave the house without saying to the bank, they file any criminal compliant for me.

4.At the same time my parents also along with me,they have own house at my native place. if i didn't pay the money to bank,they will use my parents house? My native place house registered only on my father name. he(my father) buy the house his own expendature

Please let me know the clarification


Asked on 11/28/08, 6:40 am

5 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: Clarification House Loan

1. if your financial position does not enable payment of EMI, the bank will issue demand notice under Sec.13(2) of the SARFAESI Act to pay the outstanding within 60 days failing which they can take possession of your house and sell it public auction.

2. see above. Better negotiate with the Bank to find a suitable purchaser and pay off the proceeds to the Bank.

3.No criminal complaint is possible as default in payment of loan is only a civil dispute.

4. If either your parents has not personally guaranteed repayment of loan to Bank, the Bank cannot proceed against either of them or their properties.

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Answered on 11/28/08, 11:03 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Clarification House Loan

1. No one else may 'substitute' for your liability; therefore, you need to find out your 'resources' for payment of your loan.

2. the bank may take possession of the property, sell it by auction; and recover the balance amount, if any, from you.

3. No criminal complaint may be made out unless you committed any offence except non-payment of loan;

4. No. your parents house, unless mortgaged as a 'collateral' for your loan, may have no relationship with your loan and they may have no access to that property in any manner.

You may consider selling the property yourself and clear the loan amount to avoid any loss.

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Answered on 11/28/08, 11:32 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Clarification House Loan

In my opinion you can try to settle amicably with the Bank.

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Answered on 11/29/08, 8:20 am
Nasir Butt Nasir Law Associates

Re: Clarification House Loan

Replies of Mr. J. Radhakrishnan and Mr. Sudershan Goel is most appropriate.

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Answered on 11/29/08, 8:42 am
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Clarification House Loan

I would strongly advise you to settle the matter amicably.

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Answered on 12/20/08, 6:38 am


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