Home Loans – How to save your property value in recession time???

Experts commented earlier that recession happens every 12 years. But for the past few years it is
like every 6 years and now looks like the period is reducing again. Last week I was discussing with an expert from a banking institution about the loans and its closure due to some requirements. I don’t want to go in to detail, but I want to share you a valuable thought which this gentle man gave me. He helped few of his customers to come out of legal issues on their properties…
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1500 Sq. Ft Plot with Beautiful Lake View is for SALE
Near to Sarjapur Town, Bangalore, in Hosur Taluk.
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Recession is an unavoidable factor in the financial life. When there is a recession, value of most of the properties and investments will go down and people will hope and wait for getting the value back to higher stage. After some time of starting the recession, many of the people will not be able to repay the loans fully or partially. They will try to sell of the investments or properties in a higher rate, before the deeper recession, but most of the time will not be successful. Finally will reach to a stage that loan payments will get stopped, value of property has gone down to a very lower and finally Banks will start the recovery procedure as per their schedule.
Last time when the recession happened, this expert helped a person who were doing a business by pledging his home bought for 90 Lakhs for getting a loan for just Rs. 30 Lakh. The business was running so smoothly, but recession affected his business also. For few months, he struggled with not even a good lead in business and reached to a stage of unable to pay loans as per the plan.

Fortunately he got advice from this expert in between, which helped him to sell his house almost higher than the bought price even though the actual value before the recession was 1.20 Cr plus. As he could able to sell, he successfully paid his loans in one shot, bought another house for 40 Lakh, and finally had a deposit to run the house without major issues… The expert was commenting that if the bank starts the recovery process, the property may go for auction for around 60 Lakh, which will be with nothing to live for him.

The expert helped few of his other customers also like this way. He was saying that it’s a human tendency to keep the properties, thinking about successful survival, but if there is a loan, usually will end up in trouble of banks starting the recovery process and finally nobody can save.


One joyful thing is that after the recession, this business man again started the business and is running successfully. Now most of his earnings are with this financial expert as at the time of recession, he was a life saver without charging any fees.

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