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POSTED BY ON November 15, 2012 4:16 pm COMMENTS (4)
Hi
In case of Loan against Property, can somebody help me in understanding the process that lending institution (Bank) will opt in a scenario when a person is unable to pay back laon in stipulated timeframe?
Is court involved & can court provide a stay on the mortgage of property if genuine reasons are presented.
are there any exceptions where the mortgage of property can be avoided … & the delay in payment is accepted by bank ?
Regards
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Guys … Pls Help. waiting for the details
Thanks Manish & Biswa …
a small case .. lets assume LAP is worth 1CR, with 80L still pending to be paid back. Now a House is (worth 1Cr) given as a guarantee against the loan … what will be outcome of following scenarios :
1. In case of liquidation — will it undergo bidding price ?
2. What if Bidding price is more than loan amount ? (in above case e.g. 1.25Cr) where the liability was only 80L … Will Bank keep the entire amount ?
3. what if auction doesnt result in required amount … the base price might be 80L but if no bidder is there … what will Happen.
Aside, while everthing will happen wrt agreement, Just wanted to understand … the normal workflow in case of non payment.
If anybody could give details on that ..Hope one of readers here is a property Lawyer 🙂
Loan against property is very simple, you are taking a loan and keeping some property as the guarantee , so if you cant pay off the loan in any case, the property will be liquidated .simple concept .
Rest all the points will be mentioned in the agreement .
Please check this link below. It may help you but you need to consult a property lawyer to better understand the legal aspects.
http://www.rupeetalk.com/finance-basics/loan-against-property-basics/loan-against-property-tips/disadvantages-of-loan-against-property.php