Validity of Mortgage created on property of third party

My friend have had availed a working capital loan of Rs. 70 Lakhs from a scheduled bank. There were two properties given as securities for securing the loan. For releasing one of the properties in necessity, I had given my property (Land and Residential Building) as security. Present valuation of property 1- Rs.75 L and my property is Rs.45 Lakhs. I am not all connected with the borrower and nor a blood relative. In Oct 2013, the loan became NPA and the bank has taken SARFAESI proceedings against the properties. Now the bank is ready to settle whole loan for an amount of Rs. 90 Lakhs (Actual Outstanding is Rs.99 L). However, the Borrower or First security holder is not willing to pay any amount and I would like to release my property. My doubts are- 1. Can i release my property alone? If yes, how much I should pay? I have, recently remitted a Rs.10 Lakhs towards the loan. Can I adjust the Same while the paying the loan outstanding? 2. Can bank create a mortgage on property of a third party?