• Third party collateral

Hi

We have a company and there are people who are interested in sharing their properties to take a mortgage loan. If it is done as a third party collateral and if the property owner does not pay the EMI, our company have to bear the interest and principal which will become 24% interest per annum at the end of the loan completion. How can I recover the amount/property from the property owner after the completion of the loan. As the bank have to handle the property document to the owner after the loan completion

Regards,
Latha
Asked 7 years ago in Property Law
Religion: Hindu

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4 Answers

You have to sue the owner to recover loan amount with interest

2) the agreement entered into by you with property owners should contain clause that in case he fails to repay loan he would pay the loan amount with interest

3) take post dated cheques from the property owner

Ajay Sethi
Advocate, Mumbai
96829 Answers
7812 Consultations

1. If you are not the owners of the property then you can't get loan mortgaging someone else property.

2. If they mortgage then they will have to become its co borrower in which case in default of payment of loan their property would be auctioned.

Devajyoti Barman
Advocate, Kolkata
23201 Answers
511 Consultations

1. A civil suit for recovery will have to be filed to recover the lent amount with interest.

2. Get a flawless agreement drafted by a lawyer so that on the failure of the owner to repay the loan amount he is saddled with the liability of paying heavy liquidated damages.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

If you stand as a guarantor or offer collateral security to the borrower and on his default in payment you may be held liable for repayment.Once you repay the loan you step into the shoes of the lender and can become a primary lender to the borrower and can sell the property to mitigate your amount.

T Kalaiselvan
Advocate, Vellore
87030 Answers
2337 Consultations

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