Alwsaam Business Solution

Being the subject of a more open debate today because of the economic crisis in which we live, because there are many families who unfortunately are daily difficulties in tackling a monthly fee of the mortgage.

From my point of view on this issue there are two opposing positions that must be evaluated and two different behaviors depending on who acts.

On the one hand a family (no matter the size) requested a specific amount of money to purchase a particular property (mortgage) to a lender (mortgagee) to be awarded in the form of the loan at a fixed price and formalized in a public .

So far everything seems normal because it is. Has requested that the mortgaged amount actually more cost housing and the mortgagee has been allowed, it’s an issue between the parties, but rather come here to state the saying ‘you against the bad habit of asking the virtue of not giving. ”

All mortgage should know that in his writings there is what is known as mortgage liability, something that is not usually confusing to read and which is to say that mortgage loan, or mortgage, in case of default covers the nominal itself, plus default interest, surcharge, costs up to a certain amount … or be a series of costs of foreclosure for nonpayment.

This responsibility is expressed in percent mortgage on the capital required and she must pay taxes when you sign your mortgage. At the time the housing boom, rare was the basis of 150% responsibility of capital required, so if someone could not pay the mortgage, ‘in theory’ that scripture indicates that the costs would be covered up to 150% of capital required .

What is happening?
Well, this was in times of price increases which executed by financial institutions seeking buyer default and quite possible they did recover the entire debt or even win something. But the tables turned and the floors began falling.

This has been used by financial institutions with permission of the authorities so that, when executed by a mortgage default, financial institutions put the property at public auction for half the outstanding debt and that the award (which carry their balance sheets) for that value, while the difference between that value and debt, is awarded personally by mortgaging, which is a debt for life, without property and without the possibility of returning to borrow ever.

What about the mortgage liability was signed on the mortgage? Not covered 150% of the amount requested? Why then allows banks awarded to real estate for half its value and debt for life the mortgage? What is then signed the mortgage liability and paid taxes for it?

The way I see the thing is easily explained. A very high percentage of mortgages were above the value of the property for expenses, furniture, cars, travel, …, which financial institutions know that running for the debt, coupled with the fall in house prices, never regain what they paid, and politicians know it, which could mean bankruptcy for some banks.

The payment in kind is it, return a property in exchange for the cancellation of the mortgage, but the financial institutions know that means losing a lot of money, and politicians as well, thereby taking the road of carrying a personal debt by life in jeopardy.

Accept payment in retroactively would probably be able to save many families in debt for life, but would also in turn, the bankruptcy of many financial institutions.

What do you prefer politicians elected by the people? Let them pay the people. And I did not think so. Two did not discuss if you do not want, and you do not get into debt in an amount not determined whether other lends. Therefore, the responsibilities to be shared by banks and mortgage holders, but not only for the weaker party, such as the latter.