Apni Law Staff asked 12 months ago
I’m facing a difficult situation with my home loan in Bhiwadi, Rajasthan. I’ve paid almost half of my loan for a flat from Avalon Group, but due to unforeseen circumstances, I haven’t been able to pay the last five EMIs. My lender is threatening to auction the property under the NPA Act if I don’t clear the overdue payments. What happens if the property is sold at auction? Will I be charged any further penalties? Also, am I entitled to receive any money back after the auction, and how long does the process typically take? The property isn’t registered, only a possession letter from the builder exists. I’m a Non-Resident Indian, and the property has been unoccupied since I bought it. Any advice would be greatly appreciated.
Best Answer
Apni Law Staff answered 12 months ago
Under Indian law, your lender can auction the property if you default on your loan. The auction proceeds will first be used to cover the outstanding loan amount, including penalties and legal expenses. You may receive any remaining amount, but this is unlikely given the outstanding amount. The process can take several months, and the absence of a registered deed may complicate matters. It’s crucial to consult a legal professional in India who can advise you on your specific situation.
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