Procedure to stop take poession of flat from bank
3 months ago
In 2018 we took home loan in me & my husband name as co borrower & we paid emi till 2020 after covid business was not going well & 2 months ago husband was expired & yesterday poession notice came so my question is whats the procedure to stop bank to take poession & what r the chances to come case in my favour in the court
A.Dear Client,
Firstly, contact your bank immediately and explain the circumstances. Some banks offer insurance coverage for the outstanding loan amount in case of the borrower's demise. Additionally, inquire about any relief or restructuring programs the bank may have due to the COVID-19 situation.
Consult with a lawyer to understand your legal options and potential courses of action. Depending on the circumstances, you may explore the possibility of transferring the loan to your name solely, seeking a loan modification, or negotiating with the bank for a temporary relief plan.
Documentation is crucial, so gather all relevant documents including the loan agreement, proof of payments made, and details related to your husband's demise. Your chances in court may depend on various factors, and a legal professional can provide you with the best guidance based on the specifics of your case.
Remember, acting promptly, seeking legal advice, and maintaining open communication with the bank are essential steps to explore potential solutions during challenging times.
Thankyou
Firstly, contact your bank immediately and explain the circumstances. Some banks offer insurance coverage for the outstanding loan amount in case of the borrower's demise. Additionally, inquire about any relief or restructuring programs the bank may have due to the COVID-19 situation.
Consult with a lawyer to understand your legal options and potential courses of action. Depending on the circumstances, you may explore the possibility of transferring the loan to your name solely, seeking a loan modification, or negotiating with the bank for a temporary relief plan.
Documentation is crucial, so gather all relevant documents including the loan agreement, proof of payments made, and details related to your husband's demise. Your chances in court may depend on various factors, and a legal professional can provide you with the best guidance based on the specifics of your case.
Remember, acting promptly, seeking legal advice, and maintaining open communication with the bank are essential steps to explore potential solutions during challenging times.
Thankyou
Helpful
Helpful
Share
A.Dear Client,
Section 13(3A) of the SARFAESI Act primarily lays down that any security interest created in favour of a secured creditor/Bank is enforceable without the intervention of any court or tribunal. As per sub-section (2) of Sec.13, a creditor is required to issue a notice in writing to the borrower to discharge his liability within sixty days of the notice when such borrower has defaulted in repayment of secured debt or any installment thereof, and his account in respect of such debt is classified by the secured creditor as non-performing asset(NPA). If the borrower fails to discharge his liability despite the service of notice, the creditor is free to recover the debt through the modes prescribed in sub-section (4) such as – taking over possession of the secured assets of the borrower, taking over management of the business of the borrower etc. Sub-section (3A) of Section 13 of SARFAESI Act was introduced by way of an amendment in the year 2004 whereby (3A) the borrower is allowed to make representation or raise an objection to the notice issued under subsection (2). A further duty is imposed on the creditor to consider such representation/objection and if the creditor concludes that such representation or objection is meritless, he shall communicate within fifteen days of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower. The Delhi High Court discussed the facts and ratio of the judgment of the Supreme Court in ITC Limited v. Blue Coast Hotels Ltd. & Ors.: 2018 SCC OnLine SC 237, which was the basis of the entire case of the petitioner. It was held by the Court that undoubtedly, the provisions of Section 13(3A) of the SARFAESI Act are mandatory and the lender must consider the representation/objection made by the borrower in response to the notice issued under Section 13(2) of the SARFAESI Act. The Delhi High Court observed that the intention of the Legislature in introducing sub-section (3A) is to ensure that objection/representation of a borrower against any action for enforcement of security interest is considered before a creditor proceeds to take possession of the secured assets in terms of Section 13(4) of the SARFAESI Act. The Court opined that bearing the aforesaid object in mind, it became at once clear that the creditor/Bank must consider the objection and representation furnished by the borrower before resorting to any action under Section 13(4) of the SARFAESI Act. In the given situation, you may negotiate or settle your dues against loans with the Bank by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank, creating or restructuring a repayment plan or extending the tenure of repayment of a loan, looking for debt forgiveness. considering loan consolidation, offering a one-time settlement payment. Following these steps, you may write an application requesting for settlement of dues to the concerned Bank stating why you cannot repay your outstanding dues lying against the loans. Also, write that you want to explore alternative repayment terms. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path to resolve or settle the matter with the Bank
Section 13(3A) of the SARFAESI Act primarily lays down that any security interest created in favour of a secured creditor/Bank is enforceable without the intervention of any court or tribunal. As per sub-section (2) of Sec.13, a creditor is required to issue a notice in writing to the borrower to discharge his liability within sixty days of the notice when such borrower has defaulted in repayment of secured debt or any installment thereof, and his account in respect of such debt is classified by the secured creditor as non-performing asset(NPA). If the borrower fails to discharge his liability despite the service of notice, the creditor is free to recover the debt through the modes prescribed in sub-section (4) such as – taking over possession of the secured assets of the borrower, taking over management of the business of the borrower etc. Sub-section (3A) of Section 13 of SARFAESI Act was introduced by way of an amendment in the year 2004 whereby (3A) the borrower is allowed to make representation or raise an objection to the notice issued under subsection (2). A further duty is imposed on the creditor to consider such representation/objection and if the creditor concludes that such representation or objection is meritless, he shall communicate within fifteen days of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower. The Delhi High Court discussed the facts and ratio of the judgment of the Supreme Court in ITC Limited v. Blue Coast Hotels Ltd. & Ors.: 2018 SCC OnLine SC 237, which was the basis of the entire case of the petitioner. It was held by the Court that undoubtedly, the provisions of Section 13(3A) of the SARFAESI Act are mandatory and the lender must consider the representation/objection made by the borrower in response to the notice issued under Section 13(2) of the SARFAESI Act. The Delhi High Court observed that the intention of the Legislature in introducing sub-section (3A) is to ensure that objection/representation of a borrower against any action for enforcement of security interest is considered before a creditor proceeds to take possession of the secured assets in terms of Section 13(4) of the SARFAESI Act. The Court opined that bearing the aforesaid object in mind, it became at once clear that the creditor/Bank must consider the objection and representation furnished by the borrower before resorting to any action under Section 13(4) of the SARFAESI Act. In the given situation, you may negotiate or settle your dues against loans with the Bank by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank, creating or restructuring a repayment plan or extending the tenure of repayment of a loan, looking for debt forgiveness. considering loan consolidation, offering a one-time settlement payment. Following these steps, you may write an application requesting for settlement of dues to the concerned Bank stating why you cannot repay your outstanding dues lying against the loans. Also, write that you want to explore alternative repayment terms. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path to resolve or settle the matter with the Bank
Helpful
Helpful
Share
Read Related Answers
For bank loan
Dear Client,
the loan amount must be repaid by the legal heirs of the deceased or the nominee by the deceased if the assets would be frozen by the bank. there is no other legal remedy to non payment
Bankruptcy and Debt
Dear sir,
You may join any reputed NGO and render your personal service where you can get at least free accommodation and boarding.
Strong Legal Notice--Recovery of amount
Dear Client,
Unfortunately, there are no legal remedies for illegal issues. A contract for an illegal purpose is void from the beginning and in case such an illegal act is revealed from any source, bo...
Bajaj Fin Overdraft loan default
Dear Client,
A borrower of a loan or debt is held liable personally for his or her debt for non-payment of the outstanding amount of the loan. Once the repayment of the loan stops or bounces for cons...
Unsecured busniess loan default
Dear Client,
Under the CGTMSE Scheme, in case of default by the borrower subject to the overall guarantee cap amount, the liability of the Trust in respect of credit facility shall be in case of Term...
Read Blogs on Bankruptcy and Debt
Bankruptcy and Debt Lawyers
Find Lawyers by Location
