Hello guys, I wasn't sure where to post this so went ahead with the 'Others' section. Mods can shift or ask me to shift it to any appropriate section they deem fit.
So, my uncle's business has completely stopped ever since the pandemic started. He was struggling for a few years before it, but since March 2020, apart from a few months, there is no business coming in and the cost of running the house and taking care of the business is proving to be too much.
He has an 'overdraft' facility with his bank to the tune of Rs. 28.5 Lacs. For this purpose, he had listed his house as collateral. Now he's accepted the fact that he needs to sell the house to pay off the debts but knows that the bank will pay a 'Distress' price which will be much lower than market price.
Got me wondering if we can sell the house outside of the bank (at near-market rates) and use that money to pay-off the bank dues and other debts.
Any help will be appreciated. Thanks.
CAclubindia
