The most difficult thing to do in today’s time is to buy own home. People earn money by working hard day and night and make home for themselves. For this, most people prefer to take a home loan, but sometimes due to the problem of money, the person can not repay his loan over time.
Let me tell you that if the three installments of the loan are not deposited in the bank continuously, then the account is deposited in the NPA from 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 on behalf of the bank. After this the bank can seize your house and can auction it under the Sarfaesi Act.
Let us tell you that the Sarfaesi Act (Securitization and Financial Assets and Securities Interest Act 2002) gives any bank or financial institution the right to auction the property of the person who has not been pay the loan. With the help of this Act, banks reduce their NPAs. If you too ever get trapped in such a difficult situation and you can not pay a loan, then you have some ways you can save your home from getting auctioned. Let’s know about them.
1- Increase the Loan Time Limit: If you are unable to pay the home loan installment, talk to the bank and extend the deadline to repay your loan. However, by doing so you will have to pay more to the bank, but the amount of the installment will be reduced. It is better to be a defaulter than to pay more and avoid being auctioned at home.
2- Request Exemption from Repayment of Installment: If you feel that you do not have the money to repay the lower installment, you can still ask for a rebate from the bank to repay the installment. If the bank finds your cause right then it will give you a few days grace period. No bank wants to lose its customers, so the chances of getting a grace period are greatly increased. However, for this you have to pay some extra money later, but you avoid defaults and save your home from getting auctioned.
3- Sell the investment: If the bank does not give you a grace period and not extend the loan limit then you can repay some of the home loan installment by selling your investments. You can sell your mutual fund in the investment or you can sell the shares in your portfolio.
If you do not have this option then it can be a problem for you. If you want to take a home loan then be prepared for the future to avoid any such problem.