Questions & Answers
The bank wants to take a property as collateral for an unpaid loan. What to do?
Hello,
I took out a loan in the amount of 4,000,000 DHS, and I repaid the principal amount but I refused to pay the interest which was 800,000 DHS, I still own a property in Dubai and the value is around 3,000,000 DHS.
The bank wants to take the whole property as collateral for my debt. Can the bank do this? Or do they have to sell the property, take what I owe them, and pay me the rest? Or will they be taking the whole property? Are they allowed to do such a thing?
Dear sir,
Greetings!
The bank has the right to seize your property once they file a case and file an execution case against you, then the property shall be offered for sale by public auction and that process shall take time.
If I may suggest, we can offer our help to settle the dispute municipally, and in case he filed a case already, we can proceed with the procedures before the court.
Thanks & Have a good day!
Good morning,
It is advisable to re-schedule your loan payment, instead of allowing them to attach your property towards debt, We can assist you in this regard if you wish to do so.
Please contact us via phone, WhatsApp or email for further assistance.
Hi,
Pursuant to your query, since you have not paid the interest owed to the bank, the bank can get a court order and attach the property for the recovery of the owed amount.
The property attached will go for auction and if it is sold at a much higher cost than the amount pending to the bank, then you can file a case against the bank to recover the rest of the amount.
They can sell the property by the court order first.
Hi there,
The bank can take serious action against you. But we can provide you with the best solutions to settle this dispute with the bank.
For that solution, we require some documents that you signed for the loan amount.
