Sunday, April 15, 2007

Companies buying unpaid Home Loans!!

Do you have an unpaid home loan? Are you relaxing that Bank doesn't have enough time to come and get it back? Then you are in trouble now!! Because many companies are buying these unpaid home loans from the bank and then auctioning the houses.
Home Loans

Actually, it was found that a huge amount of home loans in the banks are in the 'Bad Loans' column. Due to the increasing rate of interest on loans, people are unable to pay back the loans they had taken to build their Sweet Homes. So, many companies are coming forward to solve this problem and themselves earn huge profits.

These companies, BUY the 'Bad Loans' from the banks and then auction those houses in public auctions. Now the difference in the money they paid to the bank and the auction money is their profit.

If we see the statistics a huge amount of loan has been declared as BAD. This is because, sometime ago, banks were issuing loans without any enquiry. It is also said that Banks were somewhat forcing people to take loans. So, loan was given to many who would be able to repay it. One more major reason is the increasing rates of interest. RBI has been continuously raising the interest on loans which makes it impossible for middle class people to repay it.
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