2012 wrote:Question:
You secure a loan from a credible bank on the strength of the now 'fake' title as collateral, being a normal Kenyan you do the only normal thing and tell the bank to auction the land to recover their money.
a) Will the bank still come after you?
b) Will you be blacklisted on the Credit Reference Bureau records?
I don't think anyone got a loan against that land. I think they got their loans on the strength of their salaries. Therefore, the bank[s] will still chase the borrowers.
Nevertheless, when you place some property as collateral for a loan, bear in mind that should you be unable to pay, the bank will auction your property and if the money raised is not enough to cover the loan balance, the bank can still come after you for the balance. Remember that you borrowed MONEY not PROPERTY!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.