When applying for a loan for any more or less significant amount, banks, as a rule, require the signature of the guarantor. In most cases, such guarantors are friends or relatives, because it is really difficult to deny a loved one such a request.
However, when putting their signature on the guarantor in the loan agreement, few people think about what responsibility is assigned to him. However, in some cases, the guarantor can relieve himself of rashly assumed obligations and get rid of the burden of responsibility under someone else's loan agreement.
Responsibility of the guarantor under the loan agreement of the borrower
The responsibility of the borrower and the guarantor for the loan is almost the same. This is due to the fact that both the borrower and the guarantor, before signing a loan agreement, undergo an almost identical credit check, since if the borrower cannot pay off his loan obligations, then the guarantor will have to make payments for him.
In extreme cases, such obligations may lead to the fact that in case of non-payment of the loan debt, instead of the borrower's property, the property of the guarantor may be seized and sold in favor of the bank. It turns out that the responsibility of both the borrower and the guarantor under the loan agreement is the same, but the guarantor enters the scene only if the borrower is insolvent.
There is one interesting nuance in the obligations of the guarantor. If the borrower dies, his heirs are not obliged to continue repaying the borrower's loan, this obligation continues to remain with the guarantor. The heirs undertake to continue repaying this loan only if the guarantor also dies.
At the same time, when the loan is fully repaid, the guarantor can apply through the court with a claim to the heirs for damages related to the loan agreement of the borrower.
So, after the loan is issued, the guarantor can calmly forget about his obligations and not remember them until there is a delay in payment of the loan from the borrower for 30 days or more. In this case, a notice of the need to repay the loan debt comes to the guarantor. From this moment on, on his own initiative, he can no longer suspend the guarantee agreement. However, it is possible to cancel a loan surety agreement under certain circumstances.
How to get rid of a loan guarantee legally?
There are several ways to get rid of the surety obligation legally. The guarantor may demand to terminate his obligation if he does not approve of the borrower's actions on the loan (for example, the transfer of loan obligations to third parties). Such a case can often be found when reselling cars or real estate for which the loan has not yet been repaid.
The surety agreement can be terminated if the borrower repays the loan early or if the credit institution (bank) or the borrower makes amendments to the agreement that are unfavorable for the guarantor.
If the borrower fulfills his loan obligations on time, then you can refuse the surety by providing another guarantor instead, who will also have to go through a bank credit check.
