Financial security often appears stable, especially when a person has been regularly paying home loan EMIs for years. Owning a house is seen as a major achievement. Consistent repayments create a sense of financial control and long term progress.
However, sudden life events such as job loss can quickly disturb this stability. Long term financial commitments carry hidden risks. A few missed payments can trigger serious consequences.
A recent case shared by CA Meenal Goel highlights this reality. A Bengaluru resident reportedly lost his ₹1.2 crore flat after missing just three EMIs due to unemployment. He had already paid his home loan for eight years.
After the default, the bank invoked the SARFAESI Act. This law allows banks to recover dues without seeking prior court approval. Within 60 days, the property was auctioned for ₹95 lakh.
From the auction amount, around ₹80 lakh was used to clear the outstanding loan. Only ₹15 lakh was returned to the borrower. Though the bank acted within legal limits, the financial setback was severe.
The case shows how vulnerable borrowers can become during periods of financial distress. Missing a few EMIs, even after years of disciplined repayment, can result in irreversible loss. The emotional and financial impact can be significant.
This episode serves as a reminder to maintain an emergency fund and assess job stability. Borrowers must also understand the legal implications of loan agreements. Home ownership brings pride, but it demands careful risk planning in uncertain times.
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