A story shared on LinkedIn by a Bengaluru-based chartered accountant has triggered widespread discussion online after claiming that a man lost his ₹1.2 crore flat after missing just three home loan EMIs.

Chartered accountant Meenal Goel recounted the experience of her neighbour, identified as Rajesh, to highlight the risks associated with home loans and the importance of maintaining emergency savings.

Layoff allegedly led to missed EMI payments

According to Goel’s post, Rajesh was laid off from his job in October 2025. By January 2026, he had reportedly missed three instalments of his housing loan.

The bank subsequently issued a notice under the SARFAESI Act, 2002, a law that allows financial institutions to recover loans by seizing and auctioning secured assets in cases of default.

Goel claimed that within 60 days, the bank repossessed and auctioned Rajesh’s flat.

The apartment, which had originally been purchased for ₹1.2 crore, was allegedly auctioned for ₹95 lakh.

Eight years of payments lost

According to the account shared online, Rajesh had already paid EMIs for eight years before losing the property.

After the auction, the bank reportedly recovered its ₹80 lakh outstanding loan, while Rajesh received ₹15 lakh from the sale proceeds.

The chartered accountant said the incident highlights a harsh financial reality.

“You don’t really own your home until the loan is fully paid off. Until then, it is essentially rented from the bank,” she noted in her post.

Financial planning and emergency funds highlighted

Goel emphasised that the incident demonstrates the importance of maintaining emergency savings to handle unexpected events such as job loss.

She also advised borrowers facing financial distress to communicate openly with banks and explore loan restructuring options rather than ignoring payment issues.

Financial experts generally recommend maintaining an emergency fund that can cover six months of expenses and loan repayments.

Online users question the claim

The story, which resurfaced on X (social media platform), sparked a wider debate on social media.

While some users said the incident serves as a warning about the financial pressure of home loans, others questioned the authenticity of the claim.

Several users pointed out that property auctions typically involve longer legal timelines and that banks often provide borrowers with additional time before initiating recovery under the SARFAESI Act.

As the post is based on a personal account shared on social media, the claims have not been independently verified.

Nonetheless, the discussion has renewed conversations around financial discipline, emergency funds, and the risks associated with large housing loans.