In summary, the mortgagor
, who holds counterpart funds in investments at a higher rate of return, has net positive savings, and, therefore, one can conclude that he/ she is less inclined to liquidate his/her investments to pay off this mortgage without a compensating incentive.
The so-called equity theory holds that it is irrational for a mortgagor
to default on a loan when there is positive equity in the property.
The bank cannot rely merely on the certificate of title offered by the mortgagor
in ascertaining the status of mortgaged properties.
It is expected that the decree will stimulate real estate growth in Dubai by enabling developers who hold granted land to obtain finance for their projects; encouraging banks to lend against granted land by providing them with a legal right to sell the granted land at public auction if the mortgagor
defaults; and providing a dispute resolution process.
In the case of a defaulting mortgagor
, someone presumably has a right to foreclose.
The protection accorded by law to mortgagees in good faith cannot be extended to mortgagees of properties that are not yet registered with the RD or registered but not under the mortgagor
"While it's reasonable to expect that the foreclosing mortgagee has a right to foreclose to recover the funds it lent, it's not reasonable to do so recklessly, in such a way that not only strips the mortgagor
of title and possession of the property but often strips them of many years of equity and leaves them with a deficiency," she said.
Such chartered accountant firm shall neither be nor have been, during the last three years, a statutory auditor of, or employed or engaged as a consultant by, the concerned financial institution or the mortgagor
It covers real-estate financing devices, mortgaged property, underlying obligation, the mortgage market, federal government involvement in the financing process, transfer of the mortgagor
's and mortgagee's interest, default and foreclosure, priorities, and financing cooperatives and condominiums.
The mortgagee shall, prior to initiating enforcement proceedings against the mortgaged property and making an application with the Judge of Summary Matters to attach and sell the mortgaged property by public auction, give written notice to the mortgagor
and the guarantor, if any, by registered post with acknowledgement of receipt, informing them of the breach and requesting payment of the debt and other amounts owed within at least 30 days from the date of notice.
(BRHI) will act as the borrower and mortgagor
while SPI will be the mortgagor
, pledgor and surety.
Rather, it applies to the relationship between only the mortgagee and mortgagor
who signed the promissory note underlying the mortgage.