Around 20,000 houses in the twin cities are to be auctioned after borrowers defaulted on home loan payments.This is the first time that so many houses are being put up for auction.Many of the borrowers are IT employees who were unable to pay the equated monthly instalments because of the current slowdown in the software industry.
Several techies who took loans have lost their jobs and others were forced to accept salary cuts making it difficult for them to meet their financial commitments.
Apart from techies, there are many employees in the aviation sector too who are unable to pay their EMIs. Banks are in a piquant situation since borrowers have not hurried to pay their EMIs despite the threat of the auction.In fact, they are willing for the auction as they are not in a position to mobilise resources.
The borrowers have no option but to forego the amount that they have invested may come to around 20 per cent of the property value.
Banks which provided 80 per cent amount as loan fear that they may not get the amount even if they auction the properties.
“There is no option for banks except to dispose the properties when the borrowers are reluctant to clear the dues,” said the IDBI director, Mr K. Narasimha Murthy. “More auctions will be held in the next few months since many borrowers are yet to receive final notices from banks
