Yesterday,the redevloper called up to inform that the deal of a flat was signed up with someone else from whom he had got a token as a gesture of the finalisation of the same.The amount paid was anything but token-it must be surely more than a lakh considering that the flat is being sold for more than seventy five lakhs.
We had been negotiating with the builder for the said flat since the last three months but had opted out of giving any money as token or otherwise.We were in the process of seeking a loan from a bank & we were awaiting the bank clearance before making any payments.The bank took its own time which quickly turned from days into weeks & months before they raised some queries.We asked the builder to answer them.The bank at being pestered by the builder at one time, told him, that as he had no locus standi ,only we should talk with the bankers.This in effect, led to situations wherein we were shuttling between the two but, still, the bankers remained non-committal.The builder also was trying to produce one document after another when asked for, always questioning as to why the bankers needed it.He was of the opinion that we had chosen the wrong bank.
The bank was trying to scrutinise thousands of loan applications & maybe trying to find faults with all of them & so this was delaying the process.Moreover,the bank staff at some times was reporting sick -whether they were sick or had caught infection from Jet or Air India is a matter of guess.Actually,the attitude of the bank was making us sick but then one does not have much choice whilst seeking a loan.Maybe you have -that is another bank can be approached but then you have to start all over again.Then, you have to pay the processing fees, which is based on the loan you have applied for & this fee is non-refundable.On second thoughts,one begins to wonder who is serving whom after paying the fees.
Finally, one day,the builder called up to say that the bank staff had told him that they would visit the site of the building which housed the flat.This was news to us.We waited for the bank to inform us about their site visit.We realised that our locus standi was in doubt now as the bank omitted to even mention about the site visit.We were happy, that this showed, that our application was still under consideration.The visit just kept getting postponed & eventually did take place.As the builder had informed us,we also made our presence felt at the stated time.The bankers told us that now the loan cheque was just a matter of days !
But of course,the builder got a customer who paid a token the next day & so the deal with us was off.Some of my friends opined that we lost a good deal because of the delay by the bank & also because we refused to pay a token to seal the deal.
We had such a bad experience years earlier that we were extra cautious this time around.In that deal,we paid a token amounting to a lakh of rupees ( that was more than 15 years ago) & then we came to know that the deal was financially unreasonable.We backed off & demanded our token back but the seller who was a middle class individual like us stated that he will pay us when he gets the amount back from the bank after the maturity period.He informed us that he had put the token in a fixed deposit.We were on tenterhooks till we got back our money.This experience is still so fresh in our memory that we were sure, that if we paid the token ,the builder may treat us in a manner that we will regret for a lifetime.
I am sure,we lost a deal-not a good deal, as I believe, that whenever,one deals with a builder,only the builder profits.We all have been paying premium sums for flats since years.Don't you agree ?
Showing posts with label bankers. Show all posts
Showing posts with label bankers. Show all posts
Tuesday, October 6, 2009
Thursday, July 23, 2009
Oh ! for a loan ?
Recession has brought the real estate prices down -so we thought, till, we started a reality check.Yes,the prices had slightly come down but not much.My hubby opined that this is the best time to go for a home loan as loan rates were coming down.What we hadn't bargained was that the loan procedure takes so long that the rates would have risen up again by the time the loan is finally disbursed .Or in some cases,loan may even be refused . After all action oops, go slow speaks louder than words, nope decreasing loan rates !
So,we applied for a loan from a leading private sector bank as my hubby banks with them.The creditworthiness check that we were subjected to has left us breathless- in agony that is.They wanted to know if the house we were staying was our own or on rent.If we already owned a house in that area ,why would we want to buy now in the same area - but such logic is lost with bankers.Moreover, after the real estate bubble burst,would we want to buy a house only for investment ?Anyway,we informed them, that we were staying at a relative's place & there was no rent agreement.This led the bank to believe that we had usurped that house.So they needed the power bill to confirm that the bill was being paid & in the relative's name only.Next,they asked for our house property details. We had brought a flat in a distant suburb more than 10 years back & now it is rented out.The bank wanted the lease agreement we had with our tenant & the telephone bills as also the power bills again to ascertain the veracity of our statements.The bank agent also called up our tenant to enquire about their landlord & were curtly told by the tenant that the bank better check up with us rather than with them.The reason our tenant refused to divulge information was that he thought that we must have suppressed this information from the tax authorities. This added fuel to the suspicions raging in the mindset of the bank.
The bank also kept on asking us if we had taken any loans earlier & we answered in the negative.They were not convinced- they kept on demanding all the details of all the bank accounts.We realised that being in debt is a blessing indeed -of the financial kind that is.I was reminded of my professor at Law College who reminded us now & then that "All are not lucky to be declared bankrupt.Only those who have a retinue of cars & wives are declared bankrupt."
To confirm that we were in actual need of a housing loan, we had a personal meeting with their loan manager & his parting words were,"We have in principle agreed to sanction your housing loan."As days turned into weeks & then into months,we understood that "in principle" need not be followed in practice !On second thoughts,maybe we need to improvise on our understanding of the English language oops, Banking jargon !
My hubby is touring most of the time & hence,when he is out of town,I attend to all queries by the bank.Hence,the bank has never seen us together.Therefore, the bank wanted us to execute a power of attorney as per their format.The general power of attorney which we submitted was brushed aside by the bank as they were sure that I was not the wife of the customer & even if I was,we were separated. We are still very much husband & wife but if the attitude of the bank persists like this,I am sure,very soon,I would be filing for divorce!
I got the power of attorney by a procedure that would even shame late Telgi,the stamp duty scamster. But then, this is how we gain experience,albeit of the wrong kind ?! After all this,my hubby had to submit his employment certificate & other documents. Finally,the bank said that we had passed the creditworthiness test.
Then,the bank agent inquired if we would take a look at properties which were preapproved by the bank.We then had to tell that we had tried umpteen times with the bank to give us a list of the same but to no avail.The bank agent then had the audacity to ask if we were ready to do part payment in cash.He said this had to be done in certain cases as the builder will demand so.We thought that due to recession,banks had decided to give reimburse even such unaccounted money but were told that it was not so. We now harbor a nagging suspicion about the agent- that he is an estate agent in the disguise of a bank agent.
The bank has cautioned us that the title deeds scrutiny will take a minimum of two months.They very wisely left the maximum period this may take to our wild ,sorry wildest imagination going by what we have gone through till now.
Then we negotiated with a builder & asked him to submit his papers to the bank for verification of his antecedents & for the legal scrutiny of the property papers. Of course,we told the builder that the bank can be impolite lest he get a feeling that we & the bank had formed a consortium !In that case,the price of the flat would have shot up many times over !
The process is still continuing but now we are in no hurry as all this loan procedure has taught us detachment which years of meditation & prayer could not.We are indeed indebted to the bank for reasons other than the yet to be disbursed loan.
So,we applied for a loan from a leading private sector bank as my hubby banks with them.The creditworthiness check that we were subjected to has left us breathless- in agony that is.They wanted to know if the house we were staying was our own or on rent.If we already owned a house in that area ,why would we want to buy now in the same area - but such logic is lost with bankers.Moreover, after the real estate bubble burst,would we want to buy a house only for investment ?Anyway,we informed them, that we were staying at a relative's place & there was no rent agreement.This led the bank to believe that we had usurped that house.So they needed the power bill to confirm that the bill was being paid & in the relative's name only.Next,they asked for our house property details. We had brought a flat in a distant suburb more than 10 years back & now it is rented out.The bank wanted the lease agreement we had with our tenant & the telephone bills as also the power bills again to ascertain the veracity of our statements.The bank agent also called up our tenant to enquire about their landlord & were curtly told by the tenant that the bank better check up with us rather than with them.The reason our tenant refused to divulge information was that he thought that we must have suppressed this information from the tax authorities. This added fuel to the suspicions raging in the mindset of the bank.
The bank also kept on asking us if we had taken any loans earlier & we answered in the negative.They were not convinced- they kept on demanding all the details of all the bank accounts.We realised that being in debt is a blessing indeed -of the financial kind that is.I was reminded of my professor at Law College who reminded us now & then that "All are not lucky to be declared bankrupt.Only those who have a retinue of cars & wives are declared bankrupt."
To confirm that we were in actual need of a housing loan, we had a personal meeting with their loan manager & his parting words were,"We have in principle agreed to sanction your housing loan."As days turned into weeks & then into months,we understood that "in principle" need not be followed in practice !On second thoughts,maybe we need to improvise on our understanding of the English language oops, Banking jargon !
My hubby is touring most of the time & hence,when he is out of town,I attend to all queries by the bank.Hence,the bank has never seen us together.Therefore, the bank wanted us to execute a power of attorney as per their format.The general power of attorney which we submitted was brushed aside by the bank as they were sure that I was not the wife of the customer & even if I was,we were separated. We are still very much husband & wife but if the attitude of the bank persists like this,I am sure,very soon,I would be filing for divorce!
I got the power of attorney by a procedure that would even shame late Telgi,the stamp duty scamster. But then, this is how we gain experience,albeit of the wrong kind ?! After all this,my hubby had to submit his employment certificate & other documents. Finally,the bank said that we had passed the creditworthiness test.
Then,the bank agent inquired if we would take a look at properties which were preapproved by the bank.We then had to tell that we had tried umpteen times with the bank to give us a list of the same but to no avail.The bank agent then had the audacity to ask if we were ready to do part payment in cash.He said this had to be done in certain cases as the builder will demand so.We thought that due to recession,banks had decided to give reimburse even such unaccounted money but were told that it was not so. We now harbor a nagging suspicion about the agent- that he is an estate agent in the disguise of a bank agent.
The bank has cautioned us that the title deeds scrutiny will take a minimum of two months.They very wisely left the maximum period this may take to our wild ,sorry wildest imagination going by what we have gone through till now.
Then we negotiated with a builder & asked him to submit his papers to the bank for verification of his antecedents & for the legal scrutiny of the property papers. Of course,we told the builder that the bank can be impolite lest he get a feeling that we & the bank had formed a consortium !In that case,the price of the flat would have shot up many times over !
The process is still continuing but now we are in no hurry as all this loan procedure has taught us detachment which years of meditation & prayer could not.We are indeed indebted to the bank for reasons other than the yet to be disbursed loan.
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