Many of us take a home loan to pay for the flat or shop. The money is paid back to bank in the form of EMIs (Equated monthly installments).
But consider a scenario where in you are unable to pay the EMI due to job loss or any other personal emergency. This inability of the borrower to pay back loan amount is called as default.
In this case, bank will be at loss if they could not get their money back. So bank tries to recover the money from borrower by auctioning the property through legal process. This process is called as foreclosure.
What do you think on this topic? Please express your opinion or ask any question through comment below. You can write to me at reply2sagar@gmail.com
But consider a scenario where in you are unable to pay the EMI due to job loss or any other personal emergency. This inability of the borrower to pay back loan amount is called as default.
In this case, bank will be at loss if they could not get their money back. So bank tries to recover the money from borrower by auctioning the property through legal process. This process is called as foreclosure.
What do you think on this topic? Please express your opinion or ask any question through comment below. You can write to me at reply2sagar@gmail.com
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