Ways to prevent risks from mortgage assets

Many risks related to mortgage assets from banks

Mortgaged property was going places, mortgage banks get project mortgage stood before the risk of losing white, if not keep abreast of the owner, by the mortgage projects is not registered the transaction guarantees.

For real property, when the mortgage loans, the Bank is registered in the land registry office levels. However, due to the formation of project in the future, a form of property rights should land registration office will not register. When disputes arise, the Bank will not be a priority debt collection processing.

For the project, lending risks that banks encounter is the risk of the project being of purchase goes on sale a lot. In principle, the law only allows reverse mortgage interest rates the transfer of the project when complete infrastructure, but in fact, many businesses have the land but do not have the economic resources to implement the project was still "spleen law" in many ways to transfer the project to the secondary owner. When this, if the secondary investor stand-out bank mortgage loans and do not pay the debt, the banks are very difficult to handle the secured property, by the secondary owner does not have full legal power with respect to the project.

In addition, a series of other risks such as the project was revoked the license, could not deploy or the narrow area. Even, the project was implemented, but there are risks such as false works, works does not guarantee the quality, fire going without mortgage life insurance.

Ways to prevent risks from mortgage assets 

The Bank has closely process will take into the credit contract agreement to manage, supervise the secured mortgage property, so that if problems arise, will recover the previous debt limit. That is, the agreement all transactions, commitments related to the project with third parties must be approved by the Bank.

When mortgage lenders buy apartments, banks have to deal with the owner, control the payment made and the progress of the project. When the owner handed the Red Book, apartment, Bank must participate. Because, with the real estate projects, apartments, offices for sale refinancing a mortgage then when the owner handed over to the client, the property owner's guarantee at this will return 0. The Bank can only manage the revenue when selling the flat, if not tighten then the secured property will no longer.

Have to say, the nature of the project, as the investor, the feasibility of pre approval for mortgage with a new project is the most important factor of real estate make sure to review bank lending. By practice, real estate project is just a form of property rights.

Share this

Unknown