How Can You Stop a Bank Auction of Your Home After Losing Your Job?

How Does Losing Your Job Lead to Home Loan Auction?

Job loss can create a legitimate inability to repay. However, a creditor does not automatically lose their secured interest in your property when you lose your job. If your home was put up as mortgage towards the loan and your account is being handled under URC process, the bank can enforce its security interest using SARFAESI.

The SARFAESI Act empowers the secured creditors with certain enforcement rights. These rights are however subject to the SARFAESI Act, 2002. Section 13 of SARFAESI deals with enforcement of security interest by secured creditors and Section 17 provides a borrower with statutory remedy in case he is aggrieved by any of the acts done under section 13(4). But the question that arises from borrowers standpoint is not “Should I file a case against the bank?” Its more along the lines of :-

Can I afford a good lawyer in time to find a legal solution to save my home and settle the amount due?

Loans can take a complex turn. That’s why you need a Loan Settlement Lawyer to guide you. If the home your family lives in is being auctioned this becomes even more important. Families in Delhi NCR put majority of their net worth into their homes. Delhi, Noida, Ghaziabad, Greater Noida, Gurugram, Faridabad and other Indian cities cannot ignore bank notices, legal actions and recovery agents when their home is at stake.

Fast Facts –

• Did you know your loan does not pause because you lost your job? Lenders enforceable rights are dictated by the loan documents and by law.
• SARFAESI allows banks to enforce rights over secured property. Once the bank begins enforcement action over your home SARFAESI applies.
• Section 17 of SARFAESI provides borrowers a statutory remedy to challenge certain acts under Section 13(4) before Debt Recovery Tribunal.
• Loan Settlement is NOT a legal right granted by any law. It’s a commercial option that may be available to you.
• Ignoring a demand/ possession/ auction notice will not make it go away.
• Recovery agents cannot harass you. Even if the loan was taken from a RBI regulated lender.

How Can Loan Settlement Lawyer Stop Home Loan Auction?

Stopping the auction of your home does not mean you have forever beaten the bank at its own game. When you say you want to Stop Home Loan Auction, it could mean different things depending on your situation.

Stopping the auction could mean taking the time to understand what happened to your account and negotiate a reasonable written settlement with the bank. It could mean fixing something in the recovery process that was done wrong. It could even mean pursuing legal relief through courts if the facts and law justify doing so.

BK Singh will help you figure out what applies to your case. For example:-

Each situation is different. Just because you lost your job, doesn’t mean there is a solution that will work for you.

Loan Settlement & Home Loan Auction FAQ’s

Can I stop my home loan auction?

Do I have to pay bank if I lost my job?

Not necessarily. You should first understand the reasons for the outstanding demand as well your rights and obligations under the loan agreement and the law. A Loan Settlement Lawyer can help you understand this.

What is the law for stopping home loan auction?

There are many laws that apply to home loans. But for the purpose of stopping an auction, SARFAESI is law you should be aware of. Sarfaesi Section 13 covers enforcement of security interest by a secured creditor. Section 14 talks about assistance from Authorities for action under SARFAESI. Section 17 provides the borrower with remedy to approach DRT against certain acts done under Section 13(4). While Section 18 allows for appeal to Appellate Tribunal.

There are also many important procedures under The Security Interest (Enforcement) Rules, 2002. Relevant procedures include notices and what happens after service of those notices.

Does this law help me stop the home loan auction?

No law will automatically stop an auction once its notice has been issued. However, understanding what the bank can and can not do is helpful. For example: A phone call has very different legal meaning than a bank issuing an auction notice.

You shouldnt assume all these actions have the same meaning. Loan Settlement Lawyer can explain the actual law that applies to your notice and what you should do.

Who should contact Loan Settlement Lawyer to Stop Home Loan Auction?

Anyone who has received a notice related to their home loan can speak to BK Singh about their legal options.

Here are some questions to consider if you need help with your home loan.

Did you recently lose your job or source of income? Loans are paid off monthly. When your source of income stops so does your ability to pay. The EMI which may have been affordable earlier will suddenly become due. You may want to speak to someone about your options before your home loan account slips further.

Did the bank send you a Recovery Demand Notice? Your income situation may have changed but that doesnt mean you should ignore the notice because you cant pay today. A lawyer can at least review the notice and loans documents to advise what you need to do.

Did you receive a Possession Notice or Auction Notice on your home? If you answered yes to this question, it is especially important that you speak with BK Singh about your options. Failure to understand the notices could mean losing your home.

Are your family members getting too many recovery calls? The RBI has asked banks to stop harassing borrowers when conducting loan recoveries. In fact RBI recently specifically asked banks not to call borrowers before 8 am or after 7 pm for recovery purposes.

That doesn’t mean they can’t send you a notice or resume collections after you lost your job. It does mean you can speak to BK Singh about what constitutes a legitimate recovery call and how to deal with harassment and illegal calls.

Hire Loan Settlement Lawyer If…

• You lost your source of income and are struggling to pay your home EMI.
• The bank has threatened to auction your home.
• You have received any notice from bank that you do not understand.

Bottom line – if you have any doubt or question about your home loan you can talk to BK Singh. You have nothing to lose and your home to gain by first understanding your options.

Documents Needed For Loan Settlement

Documents related to Home Loan (see sample checklist below) Please Scan and Zip all documents together.

• Copy of home loan sanction letter/ loan agreement.
• Loan account statement as on date.
• Copy of EMI payment history.
• Any letters/ emails received from bank regarding your loan.
• Copy of Demand/ recall notice, if received.
• Copy of Notice of Possession, if received.
• Copy of Auction Notice, if issued.
• Original mortgage deed/ pgehat/ security document provided for loan.
• Salary slips from your employer, showing salary you earned before losing job.
• Termination letter from your employer or any other document which can prove you lost your job.
• Any document that shows your current income or likely source of employment.
• If there were any previous settlements/restructurings on the loan, include those documents as well.

Should I Hire Loan Settlement Lawyer After Job Loss?

Don’t just hire any lawyer because you want someone to send legal letters to the bank. Take charge of your loan by understanding what you should do. Loan Settlement Lawyer will review your loan documents, repayment history, any notices from bank, loan related documents and security for the loan. Finally we’ll review what stage of recovery actions bank has initiated.

BK Singh will then explain to you if it makes sense to talk to bank about settling your loan. Does your loan qualify for restructuring? Should you respond in writing to what bank has said? Do you need to file a legal petition to protect your rights?

The last thing you want is to act without professional advice. One day you may tell the recovery agent that you will pay full money next week. Next day you might pledge your wife’s jewellery with XYZ to get money. Later you will find both these actions did not stop bank from proceeding against you.

Learn what to say and have all communication go through your lawyer. Talk to BK Singh about your financial situation. He will explain banking terms, loan agreements and anything else you don’t understand.

Stop Home Loan Auction in Delhi/NCR timeline:

It depends on when the bank began recovery proceedings against you. A lot of turnaround time is lost if you wait until you receive an auction notice against your home.

Remember SARFAESI and The Security Interest (Enforcement) Rules, 2002 apply to your case. This means once bank issues a notice under SARFAESI certain timelines must be followed. For instance you have 60 days to respond to a bank’s demand notice.

Do not delay speaking with a lawyer if your house is at stake. Send us a copy of the auction notice and we will contact you to discuss how we can help.

Frequently Asked Questions