I had taken a home loan LIC Housing Finance last year for amount of Rs 39 lakh and starting paying EMI Rs 25,567 for part payment Rs 27 lakh during COVID year i had not applied for moratorium but paid all EMI as per my salary credit to me and I had paid the EMI with in the same month with penalties for 3 months July, August, September until salary are regularised and now manager is not willing to pay final amount of Rs 12 lakh to me again putting grace period of 3 months and in that case if my builder will cancel my agreement then I will lose my money.

Please advise what to do and my flat is ready to occupy, but the final amount of money stopped by LIC and the 90 days period by the builder is going to get completed by this month end. 

Ans: Please do not stop paying EMI to the bank unless the SC order has allowed you to do so. Your credit history will be spoiled if you stop paying the bank without backing from the court.

Ans: I understand your dilemma. In fact there is no law that says that you cannot live in a rented flat. Consider living in a rented flat for a while till your finances take shape.

The rent will be a fraction of the EMI that you will need to pay even for a smaller home. Consult a personal finance advisor if you need to do so.

Ans: I understand your frustration with the current situation. You've faced delays and complications with your home loan process and the builder's compliance with project requirements. Let's break down your options and potential solutions.

Issue Breakdown
Delays in Loan Processing:

Your initial loan sanction letter from Axis Bank is now over six months old, requiring reprocessing.
You've already paid processing fees and opened an account as instructed.
Builder Delays:

The builder has not submitted necessary documents since March.
The project is only sanctioned up to 10 floors, with pending approval for additional floors.
Options and Steps to Take
Reprocess the Loan Application
Contact the Bank:

Explain your situation to the bank manager and request a waiver or discount on the processing fee for reapplication. Highlight that the delays were not due to your actions.
Documentation:

Gather all required documents for reprocessing. Ensure all your paperwork, including the builder's documents, is complete and up-to-date.
Loan Re-approval:

Follow the bank's instructions for reprocessing. This includes verification and submission of all necessary documents.
Address Builder Issues
Communicate with the Builder:

Set up a formal meeting with the builder. Demand a clear timeline for submitting the required documents.
Request written confirmation of the current status of project approvals, especially regarding the floors beyond the 10th.
RERA Complaint:

Since the builder is RERA-registered, you have the right to file a complaint with the Real Estate Regulatory Authority (RERA). This can expedite the builder's compliance.
Visit the RERA website for your state, and follow the procedure to lodge a complaint. Provide all relevant documents and communications.
Legal Consultation:

Consider consulting a legal expert specializing in real estate. They can provide advice on how to proceed if the builder continues to delay.
Evaluating the Builder's Project
Project Approval Status:

Verify the approval status of the builder's project. Ensure that the current approval includes your flat and that future approvals for additional floors are likely.
Alternative Projects:

If the builder's project approval is uncertain, consider looking at alternative projects. Ensure these projects have all necessary approvals in place.
Negotiating with the Bank
Processing Fees:

Negotiate with Axis Bank for a reduction or waiver of the processing fees due to the builder’s delays. Provide evidence of your timely actions and the builder's delays.
Account Status:

Confirm the status of the account you opened as per the bank’s referral. Ensure it meets the requirements for the loan application.
Practical Tips
Documentation:

Keep a detailed record of all communications with the bank and the builder. This includes emails, letters, and meeting notes.
Follow-up:

Regularly follow up with both the bank and the builder. Persistence is key in ensuring timely action.
Patience and Persistence:

The process may be lengthy and frustrating. Stay patient and persistent, keeping your long-term goal in mind.
Conclusion
You’re facing a challenging situation with your home loan and the builder’s delays. By reprocessing the loan application, actively communicating with the builder, and considering legal options, you can navigate this situation effectively. Persistence and proper documentation will be crucial in achieving your goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: I understand this is a frustrating situation. Here are some steps you can take:

Regarding the Flat:

Review your Sale Agreement: This document outlines the terms of your purchase, including timelines for completion and any delay penalties the builder may owe.

Form a Flat Buyer Association: Connect with other buyers facing the same issue. A united front holds more power when dealing with the builder or legal proceedings.

Track Court Proceedings: Stay informed about the court case's progress. This might influence your next steps.

Explore Legal Options: Consult a lawyer specializing in real estate disputes. They can advise on pursuing compensation or withdrawal from the project depending on the court case and agreement.

Regarding the Bank Loan:

Negotiate with the Bank: Explain the situation and present copies of the court case documents. They might offer a temporary pause or restructure your EMI plan.

Consider Loan Against Property (LAP): If you own another property, explore a LAP to pay off the existing loan and avoid credit score damage. However, this is a complex financial decision, so consult a financial advisor.

CIBIL Dispute Resolution: If the bank reports a default despite your efforts, you can raise a dispute with CIBIL, the credit bureau, explaining the situation.

Here are some additional resources that might be helpful:

Real Estate Regulatory Authority (RERA): https://rera.goa.gov.in/ (if your city falls under RERA)
Consumer Forum: You can file a case against the builder for delayed possession.
Remember, this is a complex situation, and the best course of action might depend on the specifics of your agreement, the court case, and your financial situation. Consulting a lawyer and potentially a financial advisor can provide tailored guidance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in