What if a guarantor refuses to pay?
Quite simply, if a guarantor can technically pay, but decides they will not pay it for whatever reason, they are breaking the contract that they signed.
Collateral may be taken into account if the guarantor will not pay up what is due – or the lender may have a claim in their estate.4 Sep 2018
What happens if I am a guarantor?
Being a guarantor involves helping someone else get credit, such as a loan or mortgage. Acting as a guarantor, you “guarantee” someone else’s loan or mortgage by promising to repay the debt if they can’t afford to.
Can you get out of being a guarantor?
Unfortunately, if you have signed the loan agreement and the loan has been successfully paid out, you cannot stop being someone’s guarantor. Nonetheless, once you are their guarantor, you cannot change this.28 Apr 2016
Is a guarantor liable for unpaid loan?
The guarantor of a loan is liable if the debtor fails to clear it, the Supreme Court has ruled, while maintaining that financial institutions too cannot act like property dealers in recovering debts. A Bench of Justices B.S.30 May 2012
Does a guarantor have to be working?
A Guarantor must be working AND a homeowner. This is because they need to be able to afford the rent as if they were paying it anyway. It is also important to note that your Guarantor must earn at least 30x the monthly rental income per annum.