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can bank auction property when default in payment of loan
09-Jun-2023 (In Recovery Law)
My Brother in Law guaranteed for one person on loan in bank. He guaranteed his property and deposited originals. That guy defaulted and bankers want to acquire my in law property and sending letters for auction. Borrower has different properties (which are not pledged from his side) and is there any way, bank will go and auction that properties instead of my brother in law one. At the time of loan granted, borrower has pledged one property from his side..is bank eligible to auction our in law property without auctioning borrower one. ? Please help.
In the property is mortgaged against the loan, then in case of failure to pay back the loan the bank can recover the loan amount from the sale proceeds of the loan amount.
Helpful?
94+
94+
Adv. Siddhant Sharma
Delhi | 200+ Answers
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Hi
Your brother in law is in a tight situation ideally he should not have guaranteed the loan amount, now that is already over you can file a case before the DRT and try to tell the court that the borrower has other properties and get that included, since the case of your borther in law is a case where the guarantor is co-extensively liable for the loan.
Best Regards,
Pratap, Adv
Your brother in law is in a tight situation ideally he should not have guaranteed the loan amount, now that is already over you can file a case before the DRT and try to tell the court that the borrower has other properties and get that included, since the case of your borther in law is a case where the guarantor is co-extensively liable for the loan.
Best Regards,
Pratap, Adv
Helpful?
24+
24+
Adv. Pratap Kumar
Bangalore | 200+ Answers
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