Unable To Pay Home Loan EMI? Tips for Home Buyers

Enforcing the act is the last option banks oft for. That is why, even after declaring a property as a non-performing asset, the bank gives the borrower a maximum time of three months to reclaim the property. 

"Banks and financial institutions are more interested in recovering the money than in starting legal proceedings as the procedure of attaching and auctioning a house is lengthy and takes time. So, they will pursue the matter for at least six months before taking legal action," said Pankaaj Maalde, Head, financial planning, Apnapaisa.com.

"Finally, five months after the first default, the bank sends a notice, stating that it has valued the property for a certain sum and that it will auction the house on a particular date. This is usually set for a month from the date that the bank mails you the auction notice," stated Kulkarni.

Also Read: Indian Localities That Offer Apartments Above 2 Crore