Home loan surrender
Querist :
Anonymous
(Querist) 21 September 2011
This query is : Resolved
Hi,
I have taken a home loan from DSP, now firstblue more than 17 months ago.
I paid all EMIs upto May 2011. But builder is not doing any construction on the property and not even accepting the surrender.
What should i do, i have stopped paying EMIs and bank is after me. I am not sure what i should do?
Can someone please help? Property is socttish garden, from NIHO.
-Vikas
R.Ramachandran
(Expert) 21 September 2011
The whole thing will depend upon the terms and conditions contained in the flat purchase agreement.
Naturally, if you had taken loan from bank and do not pay EMI, bank will be after you.
Querist :
Anonymous
(Querist) 21 September 2011
But if builder is not doing any constrcution is there no way i can seek help? Whats in the triparty agreement?
Can i surrender the property to bank?
ajay sethi
(Expert) 21 September 2011
as rightly pointed out by Mr Ramchandran terms of agreement are sacrosant . what is clause in agreement as to failure on part of builder to complete construction on time?
if property is under construction bank would have released payment depending upon construction completed on project site ie slab wise .
if you ahve failed to pay bank will take recovery proceedings against you . the bank can also sell the flat and recover balance amount from you .
Guest
(Expert) 21 September 2011
Stoppage of EMI can make you defaulter and your credit rating would also go much down with the effect that you would not be able to get any loan in future from any financial institution/bank.
Your dealing with the builder has nothing to do with your liability towards the bank, which paid you loan.
If you are not satisfied with the activities of the builder, you have to tackle him legally with reference to the terms and conditions of the agreement with him.
About your repayment of EMIs, either you should continue paying EMI, or repay the total amount of home loan to clear the liability after getting refund from your builder. If the builder is not agreeable for surrender, better sell the flat to some one else and buy the peace of mind, otherwise, not only you would incur the liability of heavy interest burden, but also may lose the property, as the bank may get lien on your property on account of non-payment of loan and also would lose your crdibility. In other words, LOSS FROM ALL SIDES!
