Importance of the Effective Collection of Real Mortgage Loan
Certainly, this optimal progress is possible as long as the majority of the debtors pay off the loan punctually, and in cases when they are not able to comply with said payment to its creditor, by activating a mechanism to achieve the expedited collection of the real mortgage loan through a safe conversion system.
Mortgage loan or security trusts
It is important to mention that in recent years the lenders have increased the use of security trusts to guarantee their loans, instead of loans secured by mortgages. Despite of the benefits offered by security trusts to creditors and customers, there is another sector of the market that keeps using the loan agreement secured by mortgage.
Recovery process of mortgage debt
The success of the legal concept of mortgage loan requires the summary proceeding of the real estate guarantee, for cases in which the loan falls into arrears. In the Panamanian legal system, the judicial process generally used for the collection of this type of mortgage debt is the so-called “executory process with waiver of procedures”, thus we have a process that is very special and very summary at our disposal.
The reality is that the aforementioned process is not usually as expeditious as it faces delays both in the processing of the judicial process itself, in the procedure following the registration of the award (mainly in the physical taking of the auctioned property), until achieving the actual sale that is when the collection shall be satisfied.
This time we will list five lines of action that would reduce the harmful damages of a delayed and deficient conversion of the liquid asset through the aforementioned collection process:
Link to article
- New Regulation on Location Permit
- Law 6 of 2019: On the Ownership of Common Property in the Emirate of Dubai
- Regulation on Integrated Mortgage Services through Electronic Systems
- Cambodia Tax & Real Estate Alert: 2019 Property Tax Deadline - 30 September
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