We hear a lot about home loans with a mortgage guarantee, here are some details on this subject.
Principle of borrowing
When a natural person or indeed a legal person subscribe to a mortgage accompanied by a mortgage, this means strictly speaking that in return for taking a guarantee of a property, a lender grants a certain amount of money legally considered a loan.
This credit is of course conditioned by a certain number of criteria to be respected such as the value of the pledge precisely taken as a guarantee, the income of the borrowers, the precedence of this income and more generally the quality of the file.
What does a mortgage with a mortgage finance?
The mortgage assignments can be very diverse and varied. A classic home loan is a home loan accompanied by a mortgage guarantee insofar as the legal counterpart of the loan lies in the taking as collateral of one or more real estate. Other types of financing fall very directly in the same category of loans: for example, it can also be credit repurchase in the case of owners, we speak then of repurchase of mortgage in the jargon of professionals.
In this case, other credits also fall under bridging loans or even so-called mixed loans and even certain professional loans with the exception of products subject to collateral.
Very often, a construction loan can be the subject of a mortgage guarantee, it should also be remembered that these loans fall into the category of mortgage loans listed by the bank.
The mortgage and the notary?
Who says mortgage necessarily implies the intervention of a notary who proceeds as ministerial officer to the mortgage assignment of the property or goods taken as security. When a person contracts a mortgage, the notary in charge of drafting the deed will request the mortgage statements for the building in question and will register the property for the benefit of the lender with the office of the Registrar of Mortgages.
Concretely and legally, the lender will receive within a certain period of time a document called an “enforceable copy” which will attest to the link existing between bank and borrower. In the event of repeated defaults, the lender can thus assert its “enforceability” and have the property taken as collateral sold to recover its capital and interest losses. This is complex collateral law.