Questions & Answers
Filing a case and repossessing the property if the client defaulted on an installment
I have a mortgage of 1.3m with a bank. It is a lease and the property is registered on my name. At the moment, I live outside the UAE and cannot sell the property because of COVID-19. There is a 40-day delay with payments - 1.5 installment is due.
The bank sent me information to clear the outstanding amount within 1 day or they will start a police case and repossess the property.
Is a 40-60-day payment delay long enough to start a police case and repossess the property?
What can I do to avoid consequences? I can settle the outstanding amount within 15 days.
I plan to sell the property when the borders get reopened.
Hello,
As per your query, it is visible that your payment is due by 1.5 million and you have availed mortgage of 1.3 Million. Was it a part-finance?
Also, it seems you have not paid to date to the bank? The amount is quite huge as of today and the delay will be applicable as per the terms/clauses of the agreement with the bank.
If you have defaulted, then the bank has the right to take possession of your property. You can negotiate with the bank to provide rent to the property if it is a flat or a building and ready to move in.
In the meantime, you can settle the amount since you are agreeing to pay the rest of the amount within a few days. Or else, due to the COVID-19 situation, you can appoint a negotiator who will negotiate with the bank and settle the issue, since you are outside the country.
You may contact us via phone or email for further queries.
