What does it mean to be the guarantor of a mortgage? First of all, we must make clear what it means to be a guarantor for a mortgage. The guarantor is the person who serves as a guarantee for the banking entity . That is, if the debtor cannot pay his debt, the guarantor must take charge of it. In other words, when you sign as a guarantor for a mortgage, the debt that the guarantor has with the bank passes. Directly to the guarantor with the same conditions and amounts. In summary, in a case of non-payment the guarantor becomes responsible for the debt , and, first of all, he must face that debt as if he had it. The guarantor must respond with all his present and future assets , this means that his. Obligations are to his heirs . Therefore, when someone decides to sign as a guarantor for a mortgage loan. He exposes his income, his current assets and what he may obtain in the future.
What are the guarantor’s obligations if the debtor does not pay?
The guarantor is the debtor’s support, that is, he must respond. To the banking entity if the owner of the debt does not pay. Then, if the debtor does not pay, the bank will demand payment from the guarantor of the amount owed or, of the entire loan if the South Africa Phone Number List conditions are met. The guarantor must assume the debt, since that is what he to when he himself as guarantor. One of the problems of being a guarantor is that when requesting financing, the status of guarantor appears in the risk register of the Bank of Spain, CIRBE . The fact of appearing in this registry limits the solvency for banking entities . Another point that must be when being a guarantor is that the responsibility for the debt continues even in the event of death. That is, the heirs will receive that debt and will have to take care of it.
Is it possible for the guarantor to demand payment from the debtor?
The answer is yes, the guarantor who was to pay the debt has the right to claim what was paid to the debtor . The reimbursement action before the debtor is on article of the Civil Code, which establishes the following. The guarantor who Brazil Phone Number List pays for the debtor must be by him . The compensation includes: The entire debt. Its legal interests from the moment the payment has been made known to the debtor. Even though it did not produce them for the creditor. The expenses by the guarantor after he informs the debtor that he has been to pay. Damages and losses, when applicable. The provision of this article takes place even though the guarantee has been given without the debtor being unaware of it. This article establishes that, even though the debt with the creditor was because the guarantor paid it. The debtor contracts a new debt with his guarantor.
