When it comes to default on home loan the bank would issue a 60-day notice to the defaulter. After completion of 60 days, the banks have the right to auction or sell the house..
Some lenders use the notice of default as a formal warning to a borrower that if they do not make the mortgage payments within a specified date, the lender will take action to seize the property.
To recover the home loan, lenders sell or seize the assets or mortgaged property of the borrower. ... In case the defaulter is non-responsive even during the notice period, then the bank goes ahead with the sale of the mortgaged property of the borrower
