Your Builder Might Kill Your Credit Rating : Beware of those Subventions Schemes
Rahul Yadav earns a handsome salary at an NCR based IT firm, married and have a 3 year old son. To forego the monthly outflow of rental , Rahul bought a house some 12 months back. The developer offered NO EMI TILL POSSESSION to be paid by Rahul as the developer will pay , hence 85% money was paid by the bank directly to the developer, 10% by Rahul as the downpayment and balance 5% at the time of possession along with other miscellaneous charges.
All was going well till Rahul received call from Bank that they have not received EMI from last 4 months, when Rahul checked with the developers, got an upfront answer that they wont be able to pay right away but will pay in few weeks. THE DEVELOPER has NOT PAID till date.
Rahul is still paying his monthly rent , He has an badly affected CIBIL score and his dream home months away for possession.
Its not just Rahul there are hundreds of Rahul's who have been cheated by the developers and their false and fake promises with fantastically designed and strategically offered flat buying payment models along with loads of freebies, although the FATE of all these buyers has been the same.
Here are few questions which clicks the investor / buyer grey matter as soon as he lands in a situation like above. (Done the answers for you)
a. What happens to my flat , when will i get my possession ?
If the structure of the project has been made you don't have to worry on the possession of the property, you would get that for sure even if delayed.
b. The bank is following up for the EMI’s aggressively, what should i do ?
The loan Agreement has been done between you and the bank, the bank would ask for the EMI that has not been paid , bank will also penalize you for non payment of EMI’s on time. At this juncture you should talk to the bank and renegotiate on the interest rates of your home loan. Transferring your home loan other bank is also an option .
c. What happens to my CIBIL score, who pays for the defaulted EMI’s.
The loan was taken by you the, EMI were defaulted by you and hence the payment has to be made by you. Once the payment is on track, the CIBIL score will automatically go up within a period of 6 months
d. Who is responsible for the default in these EMI, builder or me. How do I recover this money from the developer.
As mentioned above you are responsible for the default off EMI as the loan Agreement is signed between you and the bank. Such agreement is tripartite agreement and builder is one of the party to it. At the time of the possession of the flat the developer will give you possession letter along with demand letter of pending dues which would include some unknown charges or charges you might not have heard off as well, at this point you need to negotiate with the developer adjust any such interest paid by you which was actually to be paid by the developer as per the initial sale contract.
AND even post all the above if you still feel cheated , what are the options.
a. If you have any written document on the commitment of EMI's to be paid by developer , which he never paid, you have an option to file a criminal complaint.
b. you can file a consumer complaint for the recovery of any such monies.
for more information on developer related issues stay tuned to www.atulaynehra.blogspot.com
