Borrowing against property from individuals
I have several properties which have been acquired using housing loans. The value of most of these properties is about 5 times their outstanding loans. I am in need of cash but am not able to sell any property at near market value since the economic conditions are not favourable. Existing house loan providers are not able to extend additional loans because my cash flows and income is currently strained. I have friends who may be willing to extend me temporary loan but I am not comfortable unless I am able to offer them some security. Is it possible to do a legal paperwork to secure my friend who is the lender and register it so that both are comfortable? Thanks
Asked 4 years ago in Property Law from Mumbai, Maharashtra
you can give title deeds of one of your flats as security . in orders equitable mortgage of your flat . or execute bills of exchange wherein you promise to repay loan in certian time period . give post dated cheques as security
You may enter into an agreement with the friends wherein the creditors (your friends) have the right to recover the money from the debtor (you) in case you fail to repay it within the promised time. This will offer them the comfort zone which every creditor looks forward to at the time of advancing the loan.