Unable to Pay Home loan EMI? Tips to manage this problem

The growth of the real estate market is attributed to the demand of the properties which is exponentially growing, especially the residential real estate market is rising high on the demand and supply graph of the country. With increasing real estate growth, buying a dream house has become the most expensive purchase which you make in your lifetime. People usually take various financial aids to achieve the ownership of the perfect home; funding a house through home loans is the most common mode of buying a home as it gives you significant ease for return payments. Once you get a home loan, you just pay it back through EMI’s, but what to do if some way you find yourself unable to pay the EMI’s? Losing job, depleting savings, medical exigency of any kind reason may be many but this may lead you to lose your dream home. Such situations may raise during your home loan EMI’s; here we note down a few tips which may help you overcome this EMI situation with securing your home from taken away.

Try negotiating with LendersBanks have the power to enforce the Securitization and reconstruction of financial assets and Enforcement of Security interest Act 2002(SARFAESI) on you to recover the given home loan amount, but banks never easily get attached to the property as it raises thousand other complications for them. A bank usually waits for three EMI’s and will keep on informing you about your outstanding EMI’s during this period but after three outstanding EMI’s it issues a demand notice to you asking you to pay the outstanding amount as soon as possible. Once the bank invokes SARFAESI act it gives two months period to pay the dues to bank. And at the last stage borrower gets a notice from the debt recovery tribunal which makes you compulsory for you to attend the hearing of the tribunal. In this hearing, if you are still serious about paying your home loan, the bank may offer you a leeway for the repayment of the amount.

You can always check for these options

• Call your lender and what option available for the repayment to you
• If the default is due to the hike in interest rates, you can ask bank to reschedule the loan and you can increase your tenure keeping your EMI same as before
• You can restructure the loan according to your future income and savings

Go for other optionsBe sure about your future plans, and if you are confident about getting back on the track after a few months you can your bank to offer you a moratorium for specific period. Bank offers various other options for the repayments; you can easily alter your repayment schedules and options by restructuring them by concerning your bank.1

f you have an insurance cover for loss of job, then the insurance company can take care of the EMIs for three months, but these insurance companies have few conditions over the loss of a job like Job loss must be result of retrenchment, layoff or health reason.

Make sure you got a good credit score which highly depends on your repayments history, you can talk to the bank about it and the bank may consider giving you some concessions after ensuring that you are serious about the repayment of the loan.

Taking a home loan is not the hardest part of the home loan, but the repayment of the home loan is what takes lots of efforts and managements. If you maintain your credit score with the bank and ensure about the repayment of the loan bank can give you some concessions during your bad times.