What to do after defaulting loan using another’s property?
I have taken a loan and used a property as a guarantee which does not belong to me, and the owner is unaware of this fact. Now I have defaulted on the loan repayment, and the court has ordered the recovery officer to recover the loan amount. What can I do now without informing the person who actually owns the property?
Dear Client, pledging property that does not belong to you, without the owner’s consent, is treated as fraud and misrepresentation, and while the property itself cannot lawfully be sold to recover the loan, you remain personally liable for the debt and could face criminal charges if this comes to light; at this stage, the best course is to arrange immediate repayment or settlement with the lender to stop recovery proceedings, and to engage a lawyer right away to protect you in both the civil recovery process and any potential criminal complaint, because trying to conceal the matter from the actual owner will not be sustainable once enforcement proceedings reach their property. I hope this answer helps. For any further queries, please do not hesitate to contact us. Thank you.
You used someone else’s property as loan security without their consent. This is serious and can lead to fraud charges. The best option is to talk to the lender and settle or restructure the loan. Informing the real owner may prevent bigger legal problems. Hiding it can make things worse, even criminal. For further legal assistance contact us on our helpline number.
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