Legal Question in Credit and Debt Law in India

What are the consequences of defaulting a line of credit against a property? The property value is now less than the loan amount and I cannot pay the loan amount. Can I negotiate with the bank to repay the principal only?

Also, what if the bank takes over the property and sells at a lower price than the loan amount? Will they come after my other properties?

Please advise.


Asked on 1/27/11, 7:18 pm

1 Answer from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

One can always explore possibility of a negotiation.

If amount recovered by sale of mortgaged/attached property, then bank can always recover the remaining amount from other properties of the borrower

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Answered on 1/28/11, 1:55 am


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