My name is Shiva, one of my relatives availed mortgage loan from one of the nationalized banks. He mortagaged 10 lakhs worth of property with the bank and availed 2,50,000 from the bank.
I stood as guarantee for his loan, now he is not able to pay amount regularly. Bank officials are approaching me for the amount. Since, he has mortgaged his property , cannot they sale his home and recover money. I thought, in worst case if bank is not able to recover money after selling, then I should be the remaining amount. Is my understanding not correct ?
And, also recently I availed home loan from same branch and they issued me half of the amount. Now, they are threatening to stop my remaining funds release if the person does not installments. I have a good track record with the bank for three years.
Please advise me whether they can stop my remaining funds release.