Rights of guarantor

Bank have their own lawyer to check the record from the concerned government office about non-encumbrence on the property. When the properties were mortgaged with the Bank how can the loanee sell the land it a case of cheating. You as a guaranter have done your part by informing the Bank about the property being sold. You should have proof of that information given to the Bank.You can now inform the bank that the bank have showed their reluctant attitude in taking prompt necessary steps against the borower and as such you may be relieved from position of Guarantor and for this attitude you will not be liable in future.

I tis noted that many times the Cooperative Banks follow their own procedures deviating from the normal banking practices. In the instant case, you have to engage a good lawyer who is mostly appearing for the borrowers and contest the case.  Even the personal property of the guarantor is not secured to the bank, the bank can get it sold for recovery of dues through court.

Sale of mortgaged property does not put an end to the mortgage. The sale if any as stated above, is subject to the mortgagee's right. The word 'Mortgage' is not English word. It is Latin word. 'Mort' means dead and 'gage' means pledge. So, if any one purchased mortgaged property, one should understand that, he purchased dead pledge and his rights to property shall be subject to right of the mortgagee. As a guarantor you are liable to answer the claim of the bank jointly or severally. Your claim for discharge from the liability arises only if the mortgage is lost. In the instant case there is no loss of mortgage. The purchaser's right to property is next to the right of the bank as opined above. Further as a guarantor you have no right to point out as to which property the bank has to resort to enforce to recover its debt or from whom the debt is to be recovered, unless there is an agreement contrary to the context or provision of law.