r2i forum

This is an interesting article,

http://economictimes.indiatimes.com/personal-finance/loan-centre/home-loans/analysis/what-happens-if-the-value-of-your-house-falls/articleshow/10019631.cms

[quote]
If the market value is less, the bank will ask the borrower to provide additional collateral or pay the difference immediately. If he is unable to do so, the borrower will be termed a defaulter and the bank will seize the property, and if required, sell it.

Not many people realise but while signing the loan agreement they empower the bank to take over the property in case of a default. "Most borrowers are unaware of the 'depreciation of security' clause in the banks' home loan agreement. This is one of the nearly 15 clauses stating the action that the bank will take in case of a default," says Ramesh Bhojwani, a Mumbai-based financial planner.
[/quote]

I did not realize that home loans in India have a "margin-call" built into them! i.e. Banks can ask you to put up additional money if the value of the property falls bellow certain Loan-to-Value.

Does anyone know if this is an accurate article?

(of course, this will never happen, right? :emdgust: )