1) since you have failed to pay the loan bank will auction the property to recover the loan amount

2) if there is shortfall in recovery bank would sue you to recover the balance loan amount

3)you can repay the loan and issue legal notice to Y to vacate the house

4) if he refuses file eviction suit against the trespasser

This was not the correct way of dealing with the property and tangent.

The bank will definitely declare the account as NPA but any third party can not pay the loan.

Please deal with the bank directly and evict the tenant from the property immediately.

it would affect your CIBIL record if you dont repay the loan

1) Check with the Person "Y" what transaction took place and what was the deal for how much consideration against which product or flat by your father.

2) Note down in chronological order all details date wise narration took place between them.

3) Does that person "Y" has done any agreement or deed , whether its registered or not.

Hello,

I would advise you to repay the loan and ask Y to vacate the premises at the earliest. If he does not do so then file an eviction suit.

Note, that the bank in case of failure of loan re-payment will auction the property.

Regards

Non payment of Loan will effect your CIBIL score to a great extent.

Regards

You will loose your Credit score and property value difference( if the value of the loan and value of the property is different)

You will face further finance problem every where if you look for any finance as you have a bad loan history.

Send a legal notice of eviction to the unauthorised occupants who have, in a sense, encroached upon this property.

The Bank may initiate proceedings under the SARFEASI Act and auction your house/flat to recover it's dues. If the Bank goes to the DRT, the occupants will have to anyways vacate your house when the Bank goes to take the physical possession of this house before auctioning this.

The Bank is right in a sense. The dispute is between you and the illegal occupants. take legal recourse to get them evicted and take control over your house.

4) Does your flat is in joint name with you and father?

5) why you stopped paying EMI, what was actually reason behind it.

6) If bank is asking payment from you means flat title is still on your name. So be specific with all problems

1. Did you ask the said person to vacate your flat?

2. Did you take the decision to stop paying the EMIs to the Bank on hearing from tayt person that he will not vacate your said flat?

3. Actually, you should have filed an eviction suit since it is your flat and he has trespassed in to your flat without your consent.

4. However, since you have already stopped repaying your lpan to the Bank and since your loan account has become NPA, the Bank will issue notice u/s 13(4) of SARFAESI Act for taking symbolic possession of your said mortgaged flat.

5. You can write to the Bank giving your consent to take over physical possession of the said flat for selling it and recover your dues.

6. Thereafter the Bank will apply before the local DM u/s14 of the Act for DM's taking physical possession of the said property by evicting that person for handing over to the Bank for selling the same.

7. After selling the said property, the Bank will refund you the amount collected by then, if any, in excess of your total dues.

8. You can also submit your bid to buy the said property in some other name or offer to pay off the entire dues on getting the sale notice after the said person is evicted by the DM.

9. However, in the entire process your CIBIL score will be spoiled and you shall not get any loan from any Bank who are the members of CIBIL.

1. The impact has been detailed in my earlier post.

2. Your CIBIL score will be spoiled completely as explained in my earlier post which can be considered as a minus point in the entire process.

If this was your property or registered on your name by a registered sale deed, then it becomes your property, the third person has no authority to reside in that property.

Since you availed loan, it becomes your duty as a borrower to repay the loan and you cannot ask the other party to repay the same whatever be the understanding between you both.

Since you neglected to repay the loan amount for whatever reason you may justify, what is your concern when he is not repaying the loan amount?

He is not bound by any condition to repay your housing EMI loans.

The bank will proceed with legal action for recovery as per law if the default loan is not repaid within the stipulated time

What is the impact to me if the bank does an auction ? I do not want to repay the loan until the person is still there. I have spoken with bank many times and they are of no help . they were just saying that its not their issue and they cant help in any way.

If you are not interested to retrieve your house and secure it then you may leave it just like that, let the bank proceed with their legal action for recovery as per provisions envisaged in law.

If there is no rental agreement between you both and he is not a tenant in legal terms, the bank will dispossess him with the help of police and auction the property as per law.

Hello sir , it is advisable not to stop paying EMI to bank as you are the owner of the property and in default bank may auction the property under SARFESI act ... 2) As per tenant is concerned serve them a legal notice for vacating the property , if they fail to comply you can file a suit for eviction in court ..

If the flat belongs to you legally or title is in your name then auction will take off your right. What exactly you want to do you decide. If you are not interested don't pay off.

If it is your flat and loan which you have taken to acquire the property, then it is your responsibility to clear the dues. Bank shall not take any steps to get the unlawful tenant evicted. If Y stays unlawfully in your house, file a trespass, extortion, and criminal intimidation complaint with the local police. That will solve your problem. But, pay your outstanding to the bank so that the bank does not initiate recovery proceedings, attach and sale the flat.

Your CIBIL record would always reflect non repayment of loan resulting by innauction of your property

If you settle with the bank your CIBIL score would not be affected

Civil effects the history of non payment and history never goes off my friend. Will always be there even if the score is moved up due to any reason.

1. If you had taken the loan then liability to repay it rests on your shoulders, the consequences will also be for you to bear. The bank can resort to the process under SARFAESI Act and sell the property at auction to recover its loan.

2. Nothing stops you from filing a suit for eviction against Sudhakar to evict him from the property and recover the possession of it.

3. That somebody else is in possession of your property is not a ground to stop the payment of EMIs.

1. The bank will take the possession of the property and auction it at throwaway price, to stop which you will have to approach the Debt Recovery Tribunal (DRT), which will not stay the taking of possession unless you deposit 50% of the amount in arrears.

2. Once the CIBIL score gets damaged the damage is long lasting

CIBIL score will adversely affect your future borrowings. However, if you clear the outstanding, it will not affect. If you are into landlord - tenant relationship, then file a eviction suit, if not, file a police complaint as replied earlier.

The report given to CIBIL should be corrected or rectified or updated by the reporter bank with regard to adverse report of your loan. Until then it remains.

As far as the auction is concerned, once it is pronounced then the bank will go ahead with its program and may not entertain any request from your side in this regard.

1) for cibil score you have to update your liability side perfectly, it will become scoreable automatically.

1. Since your loan account has become NPA, your CiBIL score has already nose dived.

2. It will be kept in record that once your loan account had become NPA for which no bank, who are the members of CIBIL, will sanction any loan to you as per the present practice.

3. CIBIL is a new concept for which what the Banks will do after 1/15 years for the loan applicants who carries low CIBIL score for their earlier act of allowing their loan account to become NPA, is not know. The policy might change but as of now, you shall not get any loan from the said banks.

4. After taking possession of your said flat, the Bank will issue sale notice marking copy to you and you shall be allowed to pay off the outstanding before the date of submission of the bid and take back possession of your mortgaged flat. This act of your will better your CIBIL score to some extent.

1. It is for life and the same can not be corrected in any way.

2. if you do settlement before auction then there will be no effect in your CIBIL score, the same will improve in a month or so.

Regards

1. The Bank can legally AUCTION off the property for your default and non-payment of the bank Loan, irrespective of the status of the current occupant or private financial dealings or any CIBIL score or whatever.

2. Once Auction proceedings are published (after due procedure), THEN Auction cannot be stopped. THOUGH you or your proxy can also participate in the Auction BUT the task of duly evicting the present occupant shall be the liability of the Purchaser.

Keep Smiling .... Hemant Agarwal

Cibil score depends on your pending dues or unpaid loan. If the amount is still due after the auction the cibil score will affect. If you settle with bank and take NOC from them you can submit the same to cibil and get it rectified. But this is a cumbersome procedure in India. Normally cibil score which is affected disappear after some period.