In Bangalore a Guy has lost his house because of missing EMIs. Yes you heard it right. A guy has taken a loan on his 1.2 Crore house and he is probably paying around 85K as EMI per day. Now 85K is a big amount but hewas earning good too as he was working in IT. Now IT market is volatile and he has lost his job. And since the IT market is down, he also didn't got the job for 3 months.
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Since there was no income, he could not pay his EMI for 3 months. And after 3 months the bank has auctioned the property for less amount and took back the loan amount and has given just 15 lakhs to the guy. So a guy has lost his house just by missing the EMIs for 3 months. And this is a lesson for everyone that getting a house out of our budget can be risky. What else the guy can do to save his job.
The first and foremost thing you can do is to talk to the bank and tell about your situation so that the bank will not auction your property. And they will give a grace period, you just have to pay the interest amount which is usually less. Next is to have the emergency fund, this emergency fund should have the EMI component too. And looking at the situation having atleast 6 months of emergency fund is required. In this way you will have 6 months tome to get a job until then paying the EMI will not be a problem.
And next is that you should not spend more than 30% of your take home as EMI because when you have less EMI then it's somewhat manageable to pay than the huge EMI.
