Recovery on Defaults and Enforcement of Mortgages
The HDFC would administer the housing to the borrowers, in its capacity as the S&P Agent. Administering of such-loans would follow-up for the recovery of the EMIs from the borrowers in the event of delays. In such HDFCs practice to charge the borrowers certain out-of-pocket expenses incurred by recovery of the money due. The entire amount of actual recovery of out-of-pocket not form actual payment made by a particular borrower towards this head, until receivables have been collected in that particular account.
The trustee (NHB) would empower the HDFC, under the provisions of the servicing and paying agreement, to enforce the mortgage securities where required, and institute and file suits and all other legal proceedings as may necessary, to recover the dues from defaulting borrowers.