One Layoff, Three Missed EMIs: How A Bengaluru Man Lost His Rs 1.2 Crore Flat

A viral post by a Chartered Accountant has reignited debate on financial preparedness and the risks of single-income home loans.

A Bengaluru resident lost his Rs 1.2 crore flat after missing just three EMIs following a sudden job loss, according to a social media post by Chartered Accountant Meenal Goel.

The story has sparked concern among salaried homebuyers about how quickly financial stability can collapse when income stops.

According to Goel, her neighbour had a steady job, a good salary and a home in a prime location. However, he was laid off in October. By January, after missing three consecutive EMIs, the bank issued a notice under the SARFAESI Act — a legal provision that allows lenders to recover dues without approaching a court.

Within 60 days of the notice, the property was auctioned for Rs 95 lakh.

After loan recovery and related charges, the man was reportedly left with only around Rs 15 lakh from a home originally valued at Rs 1.2 crore.

The case highlights a hard reality of home loans: until the final EMI is paid, the property effectively remains under the lender’s control. A sudden income disruption can trigger swift recovery action if dues remain unpaid.

To explore whether the situation could have been handled differently, Goel consulted a banker friend, who shared possible alternatives borrowers can consider in such crises.

One option is proactive communication. Borrowers facing genuine hardships such as job loss or medical emergencies can approach the bank before defaulting. Lenders may consider restructuring the loan, offering temporary relief, or adjusting repayment terms, especially if the borrower has a strong repayment history.

Another suggestion is selling the property independently rather than allowing the bank to auction it. In many cases, independent sales fetch better market value, while banks focus primarily on recovering outstanding dues quickly.

The episode has become a cautionary reminder about financial buffers. A single-income household with high EMIs remains vulnerable if there is no emergency fund or backup plan.

The key question many financial planners now raise is simple: Can you survive six months without income and still pay your EMIs?

If the answer is uncertain, experts say buyers should rethink loan size, maintain emergency savings, consider insurance protection, and avoid stretching finances to the limit.

The story serves as a stark example of how quickly years of savings and planning can unravel when income stops and why preparedness matters as much as property ownership.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult a certified financial planner or banking professional before making loan or investment decisions.