• Repossession of co-applicant property

I have given consent to a bank loan as co aplicant. Also my property was kept as security. Now main aplicant has defaulted on payment. Bank also has his property. Bank principal o/s is 77 lacs. Aplicants property value is around 80 lacs and our property market value is 1.5 crore. Now bank is pressurising us. They hav also issued both of us notices. Also their r 4 more co aplicants, bt nothing of them is attached as security. Bank is just now pressuring us to make payment or they will sell our property. Kunfly advise us for further action to be taken.
Asked 5 months ago in Property Law from Greater Mumbai, Maharashtra
Religion: Hindu
You are co applicant to loan and have given your property as collateral security 

2) on failure to repay the loan bank can proceed against all the applicants 

3) bank will seek to auction the mortgaged property and properly given as security  to recover its dues 
Ajay Sethi
Advocate, Mumbai
23144 Answers
1215 Consultations
5.0 on 5.0
Bank will issue legal notice to all co applicants 

In case of failure to pay it can proceed against the properties mortgaged and given all collateral security 
Ajay Sethi
Advocate, Mumbai
23144 Answers
1215 Consultations
5.0 on 5.0
Bank can put pressures on default in loan repayment. 
The bank can initiate action under the provisions of sarfesi act too.
If the main applicant has defaulted in repayment, the bank may take possession of his property under the referred act and for additional or short fall it may attach the collateral security of property offered by you.
You may talk to the main applicant to manage to somehow make good the shortfall amount after adjustment of his property offered for loan or you should be prepared for your property coming under auction for recovery.
T Kalaiselvan
Advocate, Vellore
13944 Answers
127 Consultations
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The property of aplicant is also their with bank. Why bank is pressurising us only. Also their r 4 more co aplicants.

The other co-applicants are just for name sake because they have not offered their properties as collateral security.
What is the use of taking any action against those people who never offered any security nor stood as guarantee. 
T Kalaiselvan
Advocate, Vellore
13944 Answers
127 Consultations
5.0 on 5.0

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