If the bank hikes the interests which makes it impossible for the borrower to pay the EMIs, the bank has the right to sell the house. I am sure that bank will sell the house and clear their debts, but what about the family which lives in that house? will the bank take resposibility of them? No definitely not, the family will be left on the road to face their fate. Say if the house is worth 25 lakhs, the bank will sell the house to recover their debts and I think they will auction the house. Say the house is sold at 32 lakhs because of the appreciation for the land value on which the house is built. Will the bank give the extra 7 lakhs after recovering the debt to the borrower????
