A real estate mortgage It is a real right that falls on real estate and that guarantees the fulfillment of an obligation, empowering the creditor to promote, in case of default of the debtor, the sale of the encumbered assets, regardless of their owner or possessor, in order to make your right effective with the price obtained.
Therefore, this debt instrument allows the creditor ensure that the debtor will pay you the sum of money within a set period of time. Otherwise, the creditor has the right to request the property to collect the corresponding payment.
A person or company can apply for a real estate mortgage for various reasons. However, one of the most common occurs when it is intended to make a larger investment to buy a commercial space, a home or its remodeling.
Since 2018, Ferox ADV offers advice to resolve any questions that may arise during the management of, for example, a real estate mortgage.
The operation of real estate mortgages
For a creditor or financial entity to agree to grant a loan, it must be convinced that the company or individual has the necessary assets or capital to pay the debt and fulfill the loan in the agreed time.
In this sense, the lender will study the debtor’s request, investigate the assets and ask for a guarantee that will pay the amount of money granted. In addition, clauses, payment methods that must be met and possible consequences or actions to be taken in the event of breach of the agreement will be established.
When applying for a mortgage, the following aspects should be taken into account. In the first place, the capital lent by a financial institution is less than the value of the mortgaged property or property. That is, if a loan of 80,000 euros is requested, the property to be mortgaged must be valued at approximately 100,000 euros. Second, an interest percentage is applied on the debt and a fixed or variable percentage is fixed to the person requesting the loan. Finally, the time period in which the debt must be paid is taken into account.
Variety of real estate mortgages
There are two types of real estate mortgages depending on the type of responsibility acquired.
Voluntary real estate mortgages are those that are exercised at the request of an individual or company through a prior agreement between the parties. As noted above, the debtor requests a financial loan by placing a property in his name as collateral.
Judicial real estate mortgages occur when a judge or court orders the taking of a property from a person or company that has breached the judicial, administrative or criminal norm. This type of mortgage or penalty is also known as a garnishment.
Real estate mortgages can be an alternative to boost an investment, but they must be requested with caution and under the advice of professionals in the area such as Ferox ADV.
Author: https://emprendedoresdehoy.com/prensa/el-funcionamiento-de-una-hipoteca-inmobiliaria-2/
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