gurateer for a mortagauge loan
Raghavendra M K
(Querist) 27 December 2010
This query is : Resolved
sir i am a former. my nieghbering former bought a housing loan of 1 lack rupee in a nationalised bank. he mortagauged his 28 guntas of garden land worth 3lack rupee and paddy feild of 28 guntas worth 1 lakh rupee.and total income of this party is aproximatly 75 thousand. this loan was bought five years back up to today he not returned single ruppe to the bank. loan term is 10 years.I am gurenter for this loan. how can i get safe from this clucth of bank and borower. what is my respoonsibilty? what can i do if he not pays the loan?
can i get any legal solution for this?
please help me
Devajyoti Barman
(Expert) 27 December 2010
dODo not worry much. The Bank could not touch you unless it exhausts all its option against the borrower.
Adv ramesh chheda
(Expert) 27 December 2010
as far as your liability towards bank is concerned u r equally liable whether he pays or no. but u can seek necessary dir to get it recover first from borrower and then from u. as far as u r money is concerned on making payment on behalf of u r freind , u enter in shoes of bank and entitle to recover money from him. note that as per dec of courts, u cannt ask for release unless bank agrees for the same which they never. i hope this will satisfy u r querry. if u still wish 2 knw further than u may call me on 9870112826
SAANJAAY GUPTAA
(Expert) 28 December 2010
I agree with Mr.Barman, dont worry
s.subramanian
(Expert) 28 December 2010
As a guarantor,you cannot escape your liability. It is joint and co-extensive with that of the borrower. I disagree with the view of Mr.Barman in this regard. The bank has the option to proceed against you directly without proceeding against the borrower and the mortgaged hypotheca if that leads to easy recovery of the dues. you cannot dictate to the bank to proceed against the borrower first and come to you after that. The law is well settled in this regard by the Supreme Court of India. You compel the borrower to discharge the loan dues. You can also send a registered letter to the bank to take steps to recover the loan dues from the borrower since he is getting good income from the property. That will help you in future when the bank proceeds against you.
Y V Vishweshwar Rao
(Expert) 28 December 2010
Securities - Mortgage Security & Personal Guarantee of of Third party - bank - as per their Agreement - can proceed against the either Mortgage Security or against the Personal Guarantee enforcement - for recovery of the Loan amount ! It depends on the Loan Terms and agreement with the Bank ! No Strict Rule that Mortgage should be exhausted First! subject to the Guarantee agreement terms with the Bank !
Kirti Kar Tripathi
(Expert) 28 December 2010
I agree with Mr. Chadda, Mr. Subramanian and Mr. Rao. The guarantor can not escape from liability. However, in case, the loan is paid by him, he has a right ti indemnify the same from borrower. But he can not escape from repaying the same. No body forced him to become guarantor. He became guarantor at his free will, is is presumed that he knew all aspects and consequence of becoming guarantor.
malipeddi jaggarao
(Expert) 28 December 2010
I disagree with Mr.Barman. Mr.Subramanian and Mr.Vishweshwar Rao and Mr.Chadda explained the position properly. Your liability is co-extensive with that of principal debtor. Banks are interested in recovering their dues in the easiest way. If they find recovery from you is easier than the other recourses like realization of mortgage security, they can proceed against you leaving other remedies. However, you need not be panic. You wait what course of action the Bank may opt for its recovery. Generally if mortgage of urban properties are available, Bank will resort for realization of mortgaged property under SARFAESI Act. It does not mean that they will follow-up with you for recovery. As guarantor, it is your duty to mend the principal borrower to repay the debt, that when he is a willful defaulter. However, in the worst circumstances, if you are capable of repaying the debt, you are entitled for all the securities which are in the hands of creditor (Bank) as you step into the shoes of the creditor. To make doubly sure, before making payment on demand from the Bank, have a talk with them for release of securities in your favour. Since you are the neighbour and in the same village, you are in an advantageous position on this point. Leash a threat on the borrower that you are going to repay the bank dues and sell away the property as you are entitled with the rights that bank has against the borrower. This may bring the borrower on the right track.
Suresh Gupta
(Expert) 30 December 2010
I totally agree with Mr. Chadda, Mr. Subramanian and Mr. Rao.
