Legal Question in Real Estate Law in India

Hi,

We took a home loan from ICICI in 2007. We have always made regular payments and never defaulted on EMI. However now I am a single mom and cannot keep up with the payments. Is there anyway to request the bank to foreclose the loan at a negotiated price that I can afford or do I need to declare insolvency in India.

Thanks.

B


Asked on 6/04/12, 8:21 pm

2 Answers from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Home Loans are against mortgage of property and considered to be fully secured.

Normally, Bank may not agree for reduction in principal amount.

Even if a borrower is declared insolvent, being a secured loan, bank will be able to recover loan by attaching and auctioning the mortgaged property.

Read more
Answered on 6/04/12, 10:11 pm
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

you may approach the bank and offer to foreclose. In case they do not agree and you cannot afford to pay the EMIs any more, you may find a buyer and sell the house against which you sought the loan provided the buyer is ready to make full foreclosure payment.

Read more
Answered on 6/05/12, 2:55 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in India