1) even if you surrender the property bank would auction the property to recover its dues
2) if there is shortfall bank would sue you to recover balance amount and it would impact your CIBIL score adversely
Going through financial crisis - want to stop home loan EMIs
Hi All, I've purchased a 2 BHK Flat at Unitech Unihomes Ph-2 Noida sector-117 on Dec 2009....Now its 2019 still haven't received possesion. Already case is handled by Supreme court. The son of Unitech's Director are in Jail, also heard a news that SC has asked Govt to handover it to NBCC......But all circus is ongoing & I've lost complete faith in the system. I am paying EMI's of Home loan regularly from last 10 years, but still there's no hope that I'll get home anyday, & even if i'll get it - it'll be in such a bad condition that it'll be totally worthless. So I want to surrender My property to bank & stop paying Home loan EMI's anymore ? I know while doing that I'll be on loosing side , whatever money i paid in interest & principal so far along with booking amount (Its coming somewhere 19 lacs would be lost !)....but now no other option seems better to me.....Infact putting anymore money in this well is just a waste & hence i don't want to continue further. My question is how to proceed for the same legally ? If i don't pay EMI, bank will seize my property (for which I am ready), but problem is that property is still under construction stage (only structure is built & construction stopped from many years). In that condition if bank will not be able to sell it to materialize cash then will it further held me liable or the only liability i've to face is : # loosing My property # Impacting My CIBIL score badly. If that's the only liability then I am ready for the same. ______________________________________________________ Once My credit score would be impacted then i'll never get any loan in life, but what about the loans which are already running ? whether other banks will not call me to close ongoing loans & pay their EMI ? As I'll continue rest all other loans, but for this home loan i want to close it via surrendering my property. Need legal advice on the same !
Asked 4 years ago in Property Law
Religion: Hindu
10 Answers
Let me clear you on CIBIL score for on going loan no one will ask you to pay or close in immediate basis if you're paying regular EMI for other loans.
If you want to stop this current loan and bank don't listen to you than your credit score will come down otherwise not. If you give proper intimation and reason behind it whatsoever you have explained above, explain same to bank's branch, head office and RBI OMBUDSMEN regarding this project and home loan system.
Mention that you will be able to pay rest of the EMIs once you will receive possession of the flat from that day onwards.
Your liability to service your home loan is independent of your inability to get possession of the property, either due to legal dispute or fault on the part of the builder. In case if there is a delay in getting the possession for any reason, you will have to keep on paying the EMI. As a buyer, it is basically, you, who is responsible for checking on the property title or the possibilities of a delay in construction and the risks to be borne. It is in your own interest to continue to pay the EMI so that your credit history is not spoiled. In case you stop paying your EMI it will be reported in your credit history which in turn will damage your ability to avail any credit facility from the banking system in future.
You can file a writ petition in high court praying for stay in paying home loan emi till the said litigation is definite and you have assurance of getting the flat.
1. TRY filing Consumer Court case against the Builder, Agent & the Bank, since Banks are also legally bound to scrutinize the building documents, before granting Loan. This can be done, despite the existing court cases on the project.
2. The above would only be a leverage and attempt to avoid being listed in the bad score of CIBIL or other agencies.
Thanks for all above responses: So One loss would be that My credit score would be impacted & i'll not get any other loan (I am OK with that - as already pledged to not take any loan in life again). But in case after auctioning the bank doesn't get its dues from open market or no buyer turned out as its a gloomy property market, property is already under construction & stuck from last 10 years, court case ongoing in supreme court.....In such case - whether bank will seize my other Assets or not , e.g My FD, Money in my Bank Account, My Other property , Gold jwellery e.t.c?........ Because as far as I know bank provides loan via keeping House as a mortgage, so that I am surrendering to them anyways.....Infact I am at huge loss & bank would be at benefit if this house gets constructed in next 1-2 years (already supreme court has asked NBCC to takeover this project) But My circumstances are not allowing me to carry the burden of this loan anymore & that's the reason I am forced to loose all my money invested so far (EMI's paid last 10 years + booking amount). Kindly advise ?
Asked 4 years ago
No your other assests will not be seized.
The assests which are collateral can only be seized in loan.
You can file a writ petition HC may give you relief or SC should give relief to all such people till the Asssurity of new house is not made
Bank would sue you to recover balance money
your other assets can be attached by the bank to recover its dues
That is fine whatever decision you have took now that is correct as per your prospectus point of view.
No bank can't come on your other property and whatever concern is with bank now the current under construction mortgage property.
Let bank take decision that you will be not continuing father into this unless n until you get possession of same or similar property.
Or you may write down to PMO, Finance Minister office, RBI, Bank Branch, Head Office, RBI OMBUDSMAN.
If you want to draft a legal notice letter and send to all these institutions I can work on this case your behalf. Can stop your EMI's and other auction property.
You cannot stop the EMIs without intimation to bank.
The maximum bank can do is takeover the property mortgaged to them an sell it to recover the loan.
It can affect your CIBil score adversely but other loans can compensation it.
you can write to the home loan bank stating that you are unable to repay the home loan amount owing to the financial crisis and crunches you face, hence you may ask them to proceed with the auction sale of the property adjust the loan amount with interest out of the sale proceeds.
Let the bank give any reply, you can remain silent after that as per your plans.
The bank knows what is to be done on this and they may proceed as per law for recovery.
