new Delhi. The second wave of Kovid-19 has changed a lot. Now people are trying to know that if something happens to them, what will happen to the family and how will they survive. This concern is troubling those people who have taken home loan. Since the loan amount is high, then after the death of the sole earning member of the family, there may be a crisis in the family. If this happens to anyone, what will happen to the home loan (Who will clear dues)? Will the bank sell the property and get its money? Or something else will happen. Today we are giving you the answers of all these questions in this article.
Broadly speaking, in this unfortunate situation, the bank has the option to recover the money by selling the property or house, but banks use it as a last option. Before that every effort is made by the banks to ensure that the property is not auctioned.
It is important to understand one thing here that until the bank gets its full money back, there is no legal heir right on the property. And it is also important to understand that banks cannot force a legal heir to pay off the loan.
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The responsibility falls on the legal heir
If a person has taken a home loan and dies before the loan is fully repaid, the responsibility of repayment of the loan falls on his legal heir. Apart from this, the guarantor is also given a chance, if there is a guarantor. This happens in case the Home Loan Protection Policy is not taken.
In this situation, if the family is not able to pay the loan, then it has to inform the bank. In such a situation, the bank tries hard to restructure the loan according to the financial condition of the family. Under this, there are options like increasing the tenure of the loan by reducing the EMI. Banks give full time and flexibility to the family to repay the money.
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Apart from this, there is also an option that if the legal heir is not able to make the payment of the loan, then it can be given to another heir who has sufficient means of income. The bank can adjust the loan according to the financial capacity of the new owner of the house.
home auction last option
As we have already told that in case of any untoward incident, the banks also support the family. If the bank does not see any method of payment, then the matter reaches the auction of the house. Before this, banks try their best to negotiate with the legal heirs and give them repayment options by giving them flexi payment plans.
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If there is no payment on the part of the borrower for 90 days, then the bank declares him as NPA means non-performing asset. Banks ask the co-borrowers to respond in 30 days by sending a notice in writing. If no suitable response is received during this time, then the process is carried forward for the auction of the house.
no problem if you have insurance
At the time of taking home loan, if that loan is insured from the bank itself, then the family does not face much problem. This is the reason why Home Loan Insurance Policy is very popular. If this policy is taken, then after the death of the borrower, the family does not face the problem of repaying the loan at least. The insurance company pays the remaining money to the bank and the house goes to the legal heir.
Tags: bank loan, Home loan EMI
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