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View Full Version : Third party create mortgage without guarantee is valid


kajaldutta
Nov 30, 2009, 07:03 AM
Borrower took a loan and a co-lateral security given by third party by deposit of title deed with bank. However, third party guarantee was not taken by the bank. In such circumstances, does mortgage created is valid.

ScottGem
Nov 30, 2009, 07:07 AM
If a bank underwrote a loan and you received the money, then the loan is valid. If the lender decided they didn't need additional security, that does not invalidate the loan.