Home loan by financed
7 months ago
I was taken home by financed through home loan in 2016. I was paid regularly emi till June 2022 but after that I am unable to pay. Subsequently my home loan account was NPA and bank take physical possession of my flat on November 2022, thereafter I talk with bank legal department officer,then they return my flat to me after takin legal fees and outstanding emi along with undertaking.
"Undertaking mentioned the facts that I will pay regular future payments of emi without lapse, if fail to do so then I have to peacefully vacat the flat and handover to bank"
From November 2022 to till today I was regularly paid emi but I feel I am not able to paid regularly in future.
But I don't have full amount to close loan, but I can arrange around 60% of amount due.
Here is my query
1. Can now I am go to DRT for settlement with bank.
2. Is bank ready to settle with 60% of amount due, if not what is average % of generally bank ready to settle home loan.
3. How much average time required to complete settlement process in DRT.
A.Dear Client,
Once the dues against a loan are not repaid by the Borrower for any reason whatsoever, it is treated by the Bank as NPA. Accordingly, the Bank sends notice to the Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, the Bank started the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower. You can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your dues for any reason whatsoever. Usually, Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering for settlement of dues, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's(AG) office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial burden, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
Once the dues against a loan are not repaid by the Borrower for any reason whatsoever, it is treated by the Bank as NPA. Accordingly, the Bank sends notice to the Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, the Bank started the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower. You can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your dues for any reason whatsoever. Usually, Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering for settlement of dues, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's(AG) office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial burden, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
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A.Dear Client,
1. Approach the Debt Recovery Tribunal (DRT): Yes, you can approach the Debt Recovery Tribunal (DRT) for a settlement with the bank. DRT is a specialized forum that deals with cases related to recovery of debts. You can file an application with the DRT for a settlement with the bank.
2. Negotiating Settlement Amount: The bank's willingness to settle for 60% of the outstanding loan amount will depend on various factors, such as your repayment history, the bank's internal policies, and their assessment of the likelihood of recovering the remaining amount. It is possible to negotiate a settlement amount, but the final decision will be at the discretion of the bank.
3. Timeframe for Settlement Process in DRT: The timeframe for completing the settlement process in DRT can vary depending on the caseload and other factors. The DRT will typically involve hearings and discussions between the parties involved. The average time required for settlement can vary from a few months to years, depending on the complexity of the case and any backlog of cases at the DRT.
It is important to note that reaching a settlement with the bank is a voluntary arrangement between parties, and it requires mutual agreement. It is advisable to have legal representation during the settlement process to protect your interests and ensure that the terms of the settlement are fair.
Thank you.
1. Approach the Debt Recovery Tribunal (DRT): Yes, you can approach the Debt Recovery Tribunal (DRT) for a settlement with the bank. DRT is a specialized forum that deals with cases related to recovery of debts. You can file an application with the DRT for a settlement with the bank.
2. Negotiating Settlement Amount: The bank's willingness to settle for 60% of the outstanding loan amount will depend on various factors, such as your repayment history, the bank's internal policies, and their assessment of the likelihood of recovering the remaining amount. It is possible to negotiate a settlement amount, but the final decision will be at the discretion of the bank.
3. Timeframe for Settlement Process in DRT: The timeframe for completing the settlement process in DRT can vary depending on the caseload and other factors. The DRT will typically involve hearings and discussions between the parties involved. The average time required for settlement can vary from a few months to years, depending on the complexity of the case and any backlog of cases at the DRT.
It is important to note that reaching a settlement with the bank is a voluntary arrangement between parties, and it requires mutual agreement. It is advisable to have legal representation during the settlement process to protect your interests and ensure that the terms of the settlement are fair.
Thank you.
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