90,000+ Legal Questions Answered
NPA House Loan
7 months ago
house loan is NPA since last two years, old mother, handicapped sister and mentally chalanged brother not ready to move out, bank has taken possession on paper, not ready for OTS, how to resolve the matter
A.Dear Client,
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 Bank and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. 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 one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's 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 instant financial crisis, 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.
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 Bank and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. 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 one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's 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 instant financial crisis, 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.
Helpful
Helpful
Share
A.Dear client,
The borrower can approach the High Court under Article 226 of Constitution of India and the High Court can also entertain a Writ Petition from the borrower if the borrower could establish his case clearly.
The borrower can approach the High Court under Article 226 of Constitution of India and the High Court can also entertain a Writ Petition from the borrower if the borrower could establish his case clearly.
Helpful
Helpful
Share
Read Related Answers
CHit Fund
Dear Client,
When a person issues a cheque against a promise or against any refund of money refundable by her or him and in the absence of any agreement, the cheque receiver holding the said cheque i...
Terrace rights
Dear Client,
The rooftops of the Building are also known as an open terrace and a part of the common area useable for all the floor owners of a multistoried building. Legally, a Landowner or Builder...
Disciplinary process for officer rank employee and a management staff.
Dear Client,
Holding a managerial position in the company, you have to pursue your grievance in respect of fairness or unfairness of disciplinary proceedings that ended up imposing harsh punishment be...
Repairing require for 4 storage Building
Dear Sir,
Every major repair to any building requires permission from local authority like KMC etc.
Disciplinary process for management staff
Dear Sir,
The charge officer to protect himself taking the signature of charge sheeted person on the order sheet, otherwise the charge sheeted person may question tomorrow that he does not know the co...
Read Blogs on Civil
Civil Lawyers
Find Lawyers by Location
