Unable To Pay Home Loan EMI? Tips for Home Buyers

A bank allows one default on EMI but if you fail to make your payment for the second time then the bank will send you a reminder mail of your late payments. A bank sends a demand notice only after three consecutive defaults to bring your attention to pay your dues at the earliest possible.

"If the borrower doesn't respond to any of the mails, the bank sends a legal notice through its legal department," said VN Kulkarni, chief counsellor at Abhay Credit Counselling Centre, which is sponsored by the Bank of India.

"After the end of this period, the bank can officially term the home loan an NPA and start the process of recovering the property through the SARFAESI Act," added Kulkarni. A bank declares a property as non-performing asset (NPA) only after three months wait. However, banks hold a power to implement the act of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (SARFAESI) to take over the non-performing assets without any interference of a court of law. 

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