Getting OFF from home loan Guarantor
1 month ago
Sir, I have signed home loan guarantor to known person for his home loan as help. He is not paying EMIs amount for the past 1+ year & He was missing now, not reachable. All his pending amount are mapped to my Credit CIBIL score. I couldn't be able to take Loans because of this pending EMI payment. I approached that bank(FebBank ) for help to Auction that property as he was missing. But bank members are saying that, we won't auction this property until he come and pay all the due amount or you have to pay the pending amount. So, kindly help me on getting out this Gurantor.
A.Dear Client,
A guarantor shares equal liability for repaying the principal borrower's debt. If attempts to recover debt from the borrower fail, the bank can pursue recovery from the guarantor, attaching the security provided by them. Even in the absence of a guarantor, their legal heirs may be held responsible for settling the debt using inherited assets. While a guarantor can request more time to settle dues, they cannot evade their repayment responsibility for any reason. Legal actions, including civil suits or criminal proceedings, may be taken against a guarantor. Banks can utilize debt recovery tribunals to recover dues by seizing the guarantor's property.
Negotiating a debt settlement can be pursued, either personally or through third-party debt relief companies. The settlement involves repaying a portion of the loan balance, and the lender forgives the remaining amount. Negotiations may start by offering to pay a percentage of the outstanding balance, such as 25% or 30%. It's important to be cautious of fraud, and checking with the state Attorney General's office or local consumer protection agency for any complaints against the company is recommended.
While debt settlement can alleviate financial burdens, it has potential drawbacks. It affects the credit score, making it challenging to obtain future credit or favorable interest rates. Tax consequences may also arise from settling debt. Seeking guidance from a certified credit counselor can help explore options and choose the most suitable path forward.
A guarantor shares equal liability for repaying the principal borrower's debt. If attempts to recover debt from the borrower fail, the bank can pursue recovery from the guarantor, attaching the security provided by them. Even in the absence of a guarantor, their legal heirs may be held responsible for settling the debt using inherited assets. While a guarantor can request more time to settle dues, they cannot evade their repayment responsibility for any reason. Legal actions, including civil suits or criminal proceedings, may be taken against a guarantor. Banks can utilize debt recovery tribunals to recover dues by seizing the guarantor's property.
Negotiating a debt settlement can be pursued, either personally or through third-party debt relief companies. The settlement involves repaying a portion of the loan balance, and the lender forgives the remaining amount. Negotiations may start by offering to pay a percentage of the outstanding balance, such as 25% or 30%. It's important to be cautious of fraud, and checking with the state Attorney General's office or local consumer protection agency for any complaints against the company is recommended.
While debt settlement can alleviate financial burdens, it has potential drawbacks. It affects the credit score, making it challenging to obtain future credit or favorable interest rates. Tax consequences may also arise from settling debt. Seeking guidance from a certified credit counselor can help explore options and choose the most suitable path forward.
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A.Dear Sir,
You have to approach the Banking Ombudsman or the Civil Court or the High Court and get a direction to the Bankers as it is unnecessarily giving trouble to you without auctioning the property mortgaged to the Bank.
You have to approach the Banking Ombudsman or the Civil Court or the High Court and get a direction to the Bankers as it is unnecessarily giving trouble to you without auctioning the property mortgaged to the Bank.
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A.Dear Client,
A Guarantor is equally liable for repayment of the debt of the principal Borrower and if after exercising all the steps for recovery of debt against the Borrower fails, the Bank takes steps for recovery of debts from the Guarantor attaching the security offered by the guarantor against the loan. Even in the absence of a Guarantor his or her surviving legal heirs are held liable to write off the debt from the asset or property they inherited from the deceased guarantor. Being Guarantor you can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. Moreover, legal actions may also be taken against a guarantor including filing a civil suit in court or initiating criminal proceedings against him. The banks may also make use of debt recovery tribunals to recover the dues they are owed from the defaulter borrower by attaching the guarantor's property. You can try to negotiate a debt settlement on your own if your pocket permits, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with the payment of fees or service charges. Debt settlement is an agreement between a lender Bank and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many fraud/scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state Attorney General's(AG) office and local consumer protection agency to ask if they have any consumer complaints pending on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial burden, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward
A Guarantor is equally liable for repayment of the debt of the principal Borrower and if after exercising all the steps for recovery of debt against the Borrower fails, the Bank takes steps for recovery of debts from the Guarantor attaching the security offered by the guarantor against the loan. Even in the absence of a Guarantor his or her surviving legal heirs are held liable to write off the debt from the asset or property they inherited from the deceased guarantor. Being Guarantor you can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. Moreover, legal actions may also be taken against a guarantor including filing a civil suit in court or initiating criminal proceedings against him. The banks may also make use of debt recovery tribunals to recover the dues they are owed from the defaulter borrower by attaching the guarantor's property. You can try to negotiate a debt settlement on your own if your pocket permits, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with the payment of fees or service charges. Debt settlement is an agreement between a lender Bank and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many fraud/scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state Attorney General's(AG) office and local consumer protection agency to ask if they have any consumer complaints pending on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial burden, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward
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