Legal Question in Banking Law in India

Re: House Loan Clarification1

For the amount that is deficient to satisfy the loan even after sale of the property, the Bank will file a Petition before the DRT if the balance is more than Rs.10 Lakhs or will file a civil suit if it is less than Rs.10 lakhs and obtain a decree and proceed to attach any other properties you may own or come to own. If you don't have any assets worth anything and there is no possibility of your coming into ownership of any asset of some value, the Bank will simply write off the debt and leave you in peace.

Re: House Loan Clarification1

They may collect the same from the Gurantors or from your pvt property by court orders.

Re: House Loan Clarification1

The Bank may be entitled to recover the remaining amount from you; and if you fail to repay the amount, the bank may

(a) seek your 'civil imprisonment' under CPC to recover the decretal amount; and/or

(b) seek attachment/sale of any other imovable/movable asset you may have;

(c) seek a declaration of insolvency against you;

Even with the slow-down of housing market, you may still be able to sell the property for at least the loan amount;

Re: House Loan Clarification1

Reply of Mr. Sudershan Goel is exactly right.

Re: House Loan Clarification1

They may collect the same from the guarantors or can cease your private immovable properties.