28 November 2011
Why Borrower Home Loans India Needs Legal Advice
Home loans being of very large amounts and going on for many years as compared to any other loan one needs to know about the facts and information regarding the laws involved during this loan repayment tenure. Many people are faced with the dilemma of not understanding the laws involved in loans and in case of default and unable to pay back an EMI on time leads them to pay heavy penalty and humiliation.
It is but natural that not all borrowers are lawyers and also not everyone would be aware of these facts. Usually in the beginning of purchasing a new home and applying for a home loan the borrower and their family are so involved in the selection of a best home that many points are not even given a single thought. This is life and though you may not be a defaulter but in life there may come unexpected circumstances which could lead you into trouble. Salary delay or unexpected illness in the family or hospitalization or accident of any member, sometimes other incidences though not very serious may give unexpected pressure on your monthly budget.
Any borrower must first enquire about the rules and regulations of the housing finance company. The lenders agreement clauses and terms and conditions must be read and reread carefully before signing on the dotted line of your home loan approval. You must not be ashamed to ask questions and clarify about the loan repayment tenure with your home loan representative of the housing finance company. There are special lawyers and consultants who can answer all your queries and in fact many housing finance companies have their own lawyers and counsellors who can guide the borrower with legal procedures and details.
You can also take help from private lawyers and legal counsellors and understand your benefits and concessions that may be allowed as a borrower, during the loan approval and repayment period. Why is it so important to clarify all documents legally? As the home loan would go on for say, about 15 to 20 years or more you must try and analyse your expenses that will rise accordingly. As you select a home loan repayment package try to be realistic and though you can accommodate for any rise in salary also do keep the x factor of unexpected finance pressures.
Legal advice need to be taken on following points in home loans-
First of all is the property of clear title. The land must not be an agricultural land as transfer of this would cost you heavily later. This must be clear on paper that the construction is done on non-agricultural land.
The house you have purchased must have clear title. Many people are duped with the same number of flat on different buyers. Such fraud can only come up when a legal advisor is at hand and they can guide you about this before hand. This will save much hassle later on during your loan repayment tenure, where you may also risk losing your money as well as your flat.
The area of your flat mentioned in the title deed can also be clarified with the help of a legal advisor and you can get a home loan according to your area be it carpet area.
The accounts and reputation of any lender can be gone through their yearly financial report and all this can be done by the help of an legal advisor as there are many terms which the lay man will not be able to understand.
In case of loan approval all the document written and verified would be better under legal counselling and advice.
Loan repayment tenure will involve situations of failure to repay an EMI on time and also sometimes to club payments and pay lump sum together. All these issues can be sorted out and clarified with the help of legal advisers.
The procedures adopted by the housing finance company in case of default and what procedures they adopt for loan recovery are also very very important aspects that can be clarified before hand during the beginning of your loan.
Do take legal advice before proceeding with your new home loan and help to make the repayment journey of your home loan pleasant and smooth.