ashish (engineer) 12 October 2009

rights of suriety

I am guarantor for my friend for his home loan. He has made some default in payment of his home loan EMI. Due to this the he has overdue amount of almost 1 lakh and principle outstanding of Rs. 5.6 lakhs.

Now my problem is I want to take home loan to buy my own flat, but due to my friend's default, it is reflecting in my CIBIL.

I want to know all the possible ways and options by which I can get out of this headache.

Is it possible to withdraw my name from guarantor ship? What is procedure.

Can I take any legal action against my friend and how?

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2 Replies

Isaac Gabriel (Advocate) 13 October 2009

As a guarantor,your are also liable for the default. But this cannot deprive of your right to get your ownhome.Home loan is granted on the security of the house or mortgage of the house and the society is at liberty to proceed under the securitasion for the realisation of the dues,.

kranthi kiran (Works In Judicial Department) 14 October 2009

You are equally liable along with your friend for the loan amount. At this stage, bank will not allow you from withdrawing as surity. Instruct the bank to take legal action against your friend. But, you also will be party in the said proceedings. If mortgaged, then bank can put the house for auction after following due procedure. One more option is also there, if you have sufficeint funds, you can repay the amount to bank . As a surity,You have a legal right recover those amounts paid by you towards your friend's debt..

rights of suriety

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