cherry (house wife) 19 July 2013

Mortgage

Hi All

Im cherry and Im new to this forum. I would like to know some details and suggestions from you people for my problem.

My father is a government employee and he is giving surity to his brother, who is working in cine industry. My father's brother took home loan from some bank, for that my father given surity to him. For giving surity he submitted his salary payslips, ID proofs etc. Now my doubt is what will happen if my father's brother will not pay the loan in time? Is there any chances to do any salary deductions to my father because of that loan repayment? In future does my father eligible for taking any home loan of his own purpose before my uncle repays his home loan?

Please clarify doubt. Im so much worried about this problem. Please reply me as soon as possible.

Regards

Cherry

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3 Replies

Ajit Singh Cheema (practising Advocate) 20 July 2013

In the normal circumstances ,the banks prefer to act against the mortgaged property ,through action under SARFAESI ACT.However the liability of the guarantor is joint and several,or we can say the liability of the guarantor is co extensive with borrower.

As per the latest instuctions the RBI has authorised banks to go after both borrower and guarantors of loans . In the eyes of law , both are to be treated on an equal footing .

Though getting the deduction of instalment from the employer of your father may not be that easy. Yet once the suit is decreed it be easy to execute it against your father . Further a bad loan against the name of your father may become a hurdle in getting fresh loan in his personal name.

Ajit Singh Cheema (practising Advocate) 20 July 2013

As per the latest instuctions the RBI has authorised banks to go after both borrower and guarantors of loans . In the eyes of law , both are to be treated on an equal footing .