Please intimate what is the legal position on the aforesaid matter.
1.A property (house) is in joint name (two brothers) and took joint housing loan. Thereafter, a written partition was made on the property (house). 1st applicant is agreed to pay the loan 1/2 of the instalment. Whereas the 2nd applicant is not paying the loan. The bank tried to deduct whole amount from the 1st applicant only. Please advice, what action may be taken by the 1st applicant to secure his portion in the house. The bank told that they will attach whole property.


  1. That is the nature of the beast. One for all and all for one. You can not purchase the bedroom and kitchen and not the rest of the house.

    It matters not to the bank which of you are not making the mortgage payment, both of you signed the loan docs, agreeing to pay each month a certain amount, therefore the lender may legally come after one or both in order to collect the monthly mortgage payment.

    Your lender can not foreclose on the kitchen and bathroom of a house therefore the lender will foreclose on the entire property to include the garage.

    You may either bring the mortgage current, make a deal with the person that is delinquent to pay him out or add him as a lien holder thus future compensation, as he sign his portion over to you through a deed by going to a title company to accomplish this deed signing and recording the lien.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  2. The 1st applicant’s only option is to make the payments himself and sue the other for their share.

    The borrowers are jointly and severally liable for the repayments. The bank does not care which one they get their money from. Nor can the bank be adversely affected by a partition after they have loaned money on the property. If repayments are not made in full and on time, the bank can and will foreclose on the loan and take possession of the property.

  3. Did the applicant have informed the bankers about their partition? because the bankers have clear lien in the property, the partition has taken only after obtaining the loan,so this partition wont bind the bankers. its the co applicants have to come forward for a compromise and make the financial settlement to the banker.

  4. It is the joint responsibility of both the parties to remit monthly installments. Subsequent partition or MOU among borrowers can not bind the Bank. Even if one is defaulting as per your subsequent partition, Bank has full rights to proceed total property.

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