The most difficult task today is to buy your own home. People work hard day and night to earn money and build homes for themselves. For this, most of the people like to take home loan, but sometimes due to financial problems, the person is not able to repay his loan on time. Let us know about it in detail.
Let us tell you that if three installments of the loan are not deposited in the bank continuously, then the account is declared NPA by the bank. The bank waits for one year to repay the home loan installment, but after that the person taking the loan is declared a defaulter by the bank. After this the bank can seize your house and auction it under the SARFAESI Act.
Let us tell you that the SARFASI Act (Securitization and Financial Assets and Security Interest Act 2002) gives any bank or financial institution the right to auction the property of a person who is unable to repay the loan.
With the help of this Act, banks reduce their NPAs. If you ever get into such trouble and are unable to repay the loan, you still have some ways by which you can save your house from being auctioned. Let us know about them.
Extend the loan deadline
If you are not able to pay the home loan installment, then talk to the bank and get the deadline to repay your loan extended. However, by doing this you will have to pay more money to the bank, but the amount of installment to be paid will be reduced. It is better to pay more amount and save the house from being auctioned than to become a defaulter.
Ask for exemption from paying installments
Even if you feel that you do not have the money to pay the lower installment, you can still ask the bank for a discount on paying the installment. If the bank finds your reason valid then it will give you a grace period of a few days.
No bank wants to lose its customers, hence the chances of getting the grace period increase significantly. However, for this you have to pay some additional amount later, but you are saved from being a defaulter and also save your house from being auctioned.
Sell the investment
Since PCO neither gives grace period nor extends the loan tenure, you can repay some part of the home loan installment by selling your investments. In investing, you can sell your mutual funds or sell the shares in your portfolio.
If you do not even have this option then it can become a problem for you. If you also want to take a home loan, then be prepared in advance to avoid any such problems in future.
