Can bank sell the property which is not mortgaged to recover the loan
Answers (2)
It totally depend on clause mentioned in agreement signed by you and bank in relation to Loan . If it is mentioned in agreement that if your property value not able to fulfil value of loan or if loan unpaid then any property link to that loan or any other property registered in your name will sell out.
Advocate Rajat Goel
4.0| 3+ ratings
Veer Savarkar Block, Chhatarpur,
Delhi
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Banks have to follow the process and give you time to repay dues before repossessing your assets to realise the arrears.
Typically, banks initiate such proceedings under the SARFAESI Act. If the borrower’s account is classified as a non-performing asset (NPA), where repayment is overdue for 90 days, the lender has to first issue a 60 Days’ notice to the defaulter.
There are cases where the bank has sold the property of the defaulter which is not mortgaged by filing case under SARFAESI Act and involve your personal property to an initial loan taken by you.
Advocate Ankit Juneja
Greater Kailash - 1, Delhi
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