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Mortgage credit: when to use it?

Mortgage credit

Mortgage credit

Mortgage credit is an ongoing practice that reconciles two parties (lender and borrower) in a single professional or private contract.

What is mortgage credit?

What is mortgage credit?

Mortgage credit was the only guarantee after the war for obvious reasons. Indeed, in these times of reconstruction, the urgency dictated economic actors to proceed from the outset to real estate financing rather than the constitution of files submitted to such or such administration. The mortgage is a unique model that finds its interest in the guarantee offered, regardless of the borrower’s income, his state of health and his projects, whether financeable or not. In other words, the credit requested is backed by a much higher guarantee (or even default) at the time of the loan.

What procedure to validate the mortgage loan?

What procedure to validate the mortgage loan?

The registration procedure and its formalism make the mortgage of great reliability and security. For example, the property offered to the guarantee, (well said mortgaged) can not be transmitted without mentioning the debt contracted. Better, woe to those who would not submit to this obligation because the property sold with impunity would be seized “in the hands” of the last purchaser.

So, a sum borrowed includes a coercive mechanism, unavoidable, until perfect repayment. We could make the connection with the “credit of my aunt” who knew his hours “of glory if you allow me”. Explanation for our young generations: in case of difficulties of everyday life, people no longer have a penny to live had recourse to this formula. It was a matter of depositing a valuable object for a price much higher than the need for immediate money. Restitution could only be obtained after repayment of the said sum.

In which case to use mortgage credit?

In which case to use mortgage credit?

This procedure, both rigorous and discretionary, responds to many situations. Indeed, the need for money comes from various sources, even bad fortunes to mention no unfortunate affair. The most common these situations is that of the legal constraint with imminent auction. Of course not all cases are so catastrophic!

We can know a concern for family difficulty that will rub off on the smooth running of the company. It will be helpful, if not essential, for them to know where the difficulties lie in order to respond effectively.

The mortgage registration procedure takes place:

– on a property of which the borrower is the owner, the most common case,
– but also on property offered as a hypothecary bond by a family member or even by a third party.

I would like to mention the case of a company that is faced with unpredictable backlogs that are not always easy to master. The use of mortgage credit is interesting. Registration fees on the property are made once for a maximum amount; then the entrepreneur will debit his short account according to his cash needs without any other form of trial and without being worried by the bank.

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