suresh (some) 22 June 2010

Not Paying EMIs for Home Loan

Dear All,

My cousin has availed a housing loan from ICICI bank in the month of March 2008 from ICICI bank LTD. The loan amount was 21 lakhs with a tenure of 240 months (20 years). He has paid EMIs for 22 months continuously after taking the loan, after which he stopped paying due to some personal financial crisis. So, I have the following questions. He has not yet received any legal notices yet, (stopped payment from last 5 months), now the legal cell has intimated him about issuing a "loan recal notice"

1. What could be consequences of the Loan Recal Notice.

2. He is not willing to pay any further EMIs and he would like to request the bank to acquire the property. (he is willing to forfeit all the EMIs paid so far).......how far is this option possible.

3. he is working in the same company where he has applied for the housing loan, is there any possibility for the bank to attach the EMIs to his salary account.

4. What other options does he have to close the loan (he is in severe financial crisis and may not be in a position to pay further EMIs)

any help would be highly appreciated.

thanks,

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6 Replies

mahendrakumar (marketing) 26 June 2010

try to find a buyer for the building and if the price is reasonable,with his/her help close the bank loan.

the actions by the bank depends upon the collateral securities,surety if any and other papers signed at the time of loan.

unlesswe know all the terms of loan and documents signed by him,it is difficult to give further guidance.

Devajyoti Barman (Advocate) 27 June 2010

Every bank has its own guidelines regarding the loan recall process. For the options you want to explore you have to get in touch with the particular bank in this regard . As you are willing to forgo the property itself in lieu of the repayment of loan the borrower is not going to suffer any prosecution.

Satya Narayana Palukuru (Advocates & Mediators.) 27 June 2010

Bank may proceed under surfasi act and flat will be taken over

before this find out remedi

suresh (some) 28 June 2010

try to find a buyer for the building and if the price is reasonable,with his/her help close the bank loan.

the actions by the bank depends upon the collateral securities,surety if any and other papers signed at the time of loan.

unlesswe know all the terms of loan and documents signed by him,it is difficult to give further guidance.

Thanks so much for you reply, i tried to find a buyer, but the prices in that area have come very low, that if we sell the flat we dont even get the principal outstanding and we are falling 5 - 6 lacs short of prinicpal outstanding.

there are no other collateral securities given to the bank, the loan was given based on the salary account.

shall i send you the scanned document copy of the home loan agreement?

thanks once again,

suresh (some) 28 June 2010

Originally posted by :Devajyoti Barman
"	Every bank has its own guidelines regarding the loan recall process. For the options you want to explore you have to get in touch with the particular bank in this regard . As you are willing to forgo the property itself in lieu of the repayment of loan the borrower is not going to suffer any prosecution.	"

Dear Barman, thanks so much for the reply, can you please reconfirm that if we wish to forgo the property, then there would be any legal action on us.

thanks