I have taken a home loan from one of the reputed banks, right now the property which i have mortgaged in the bank is under litigation(someone else is claiming that the property actually belongs to them). What should I do now? Can I go and tell this issue to bank and stop paying the EMI till the problem is settled? Also what will happen if I become defaulter?
Did u not check title before buying property??? Or did u leave it to the Bank to do the due diligence so as to save petty costs on lawyer. U r in a bad situation. If u stop paying EMI u become defaulter and it he matter is settled by Court (if in litigation) it would take a number of years and ur interest burden then in the future would be enoromous.
This is the problem. People do not want to spend a small amount to get an independent search done by a lawyer as they would think that the bank lawyers would do it. I think one can should have an independent opinion from ones own lawyer to satisfy oneself for a property in which u are investing in lakhs
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Financial bank is concerned only on 'money', not on litigation, it is between you and the person claiming it. So you need to pay EMI till it is cleared, else if you miss 3 EMIs will get notice for that, penalty (as a defaulter). Even if you lost the case, you need to pay the money that you have taken from the bank. they will try to recover from the security or any other sources or from RECOVERY CELL