Knock knock!
Who's there?
Gunda
Gunda who?
Gunda who's going to break your legs if you don't pay off the home loan EMIs.
Home loan is probably is the biggest loan which we will take in our lifetimes.
We spend close 2030 years trying to repay this loan. A bulk of our income goes towards paying this loan. Naturally, if shit hits the fan (such as job loss or health ailments) we are most likely to default.
If you miss 3 instalments, the bank will send you a final 60 days notice under the SARFESI Act.
As per this, the bank has the right to seize your property without going to court. I know brutal The bank is going to auction your property to recover the loan and kick you out.
What should you do?
1) Bribe the branch manager. Just kidding Try to explain your situation. If you have a good credit score and have a genuine short term reason he/she would give you some more time.
2) Increase the loan tenure to reduce the EMI cost and make it more manageable. Always try to keep the EMI within 40% of your income.
3) Liquidate your provident fund to repay the loan. You can liquidate up to 3 years of income form the PF. This will give you enough time to sort out your situation.
4) If all of this still doesn't work, try to sell the home by yourself. Bank doesn't have your best interests at heart. It's a distress sale for them. They will sell it just enough to get their money back. You can protest but it still won't get the best market price.
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