Loans and forms of bail
If you need a loan but do not have enough money yourself, bail is a possibility.
Forms of bail
In the professional language one distinguishes between simple bail and self-pay bail. The difference lies in the requirement for documentation from the creditor.
By simple bail, the bank must prove that it has tried in vain to get the money from the borrower before it claims against the borrower.
The most common form of bail is self-bail. Here it is for the bank to prove that the loan is not serviced according to the agreement. As a guarantor, you guarantee that interest and installments will be paid on time. The claim from the bank can be directed to you as a guarantor even if the borrower should have the ability to pay in the first place.
In other words, the risk is greater than by a simple bail. If there are several guarantors, it is common for the liability to be jointly and severally, so that all the guarantors take responsibility for the whole of it equally. The bank may require one of the guarantors to repay the entire loan It is up to this guarantor to demand that the others pay their part of the debt to him.
Mortgages on another person’s property
Third-party mortgages, mortgages on another person’s property. It is not uncommon for parents or others to provide housing or cottages as collateral for children’s or others’ loans. Usually, this is a straightforward way to secure the loan, while at the same time achieving a lower interest rate. The problem occurs when the loan is in default Home or the owner of the mortgage object (the home or the cottage) cannot be held responsible for the loan, but the mortgage object may be required (sold) to cover the loan. In such cases, the debt is issued to the borrower while the mortgage bond is issued at home by the property.
The relationship between the debt note and the mortgage bond is specified in the mortgage statement. The mortgage guarantor does not always have the finances to service the loan so that forced sales can be avoided. Such cases often end up with a family tragedy or at least a conflict.