[Trl-aleya] NUMBER ONE Success System

[Tommy Lee]

http://www.noss123.com/

In recent years, many economists have recognized that the lack of effective
real estate laws can be a significant barrier to investment in many
developing countries. In most societies, rich or poor, a significant
fraction of the total wealth is in the form of land and buildings.

In most advanced economies, the main source of capital used by individuals
and small companies to purchase and improve land and buildings is mortgage
loans (or other instruments). These are loans for which the real property
itself constitutes collateral. Banks are willing to make such loans at
favorable rates in large part because, if the borrower does not make
payments, the lender can foreclose by filing a court action which allows
them take back the property and sell it to get their money back. For
investors, profitability can be enhanced by using an off plan or
pre-construction strategy to purchase at a lower price which is often the
case in the pre-construction phase of development.

But in many developing countries there is no effective means by which a
lender could foreclose, so the mortgage loan industry, as such, either does
not exist at all or is only available to members of privileged social
classes.

In a mortgage by legal charge, the debtor remains the legal owner of the
property, but the creditor gains sufficient rights over it to enable them to
enforce their security, such as a right to take possession of the property
or sell it.

To protect the lender, a mortgage by legal charge is usually recorded in a
public register. Since mortgage debt is often the largest debt owed by the
debtor, banks and other mortgage lenders run title searches of the real
property to make certain that there are no mortgages already registered on
the debtor's property which might have higher priority. Tax liens, in some
cases, will come ahead of mortgages. For this reason, if a borrower has
delinquent property taxes, the bank will often pay them to prevent the
lienholder from foreclosing and wiping out the mortgage.

This type of mortgage is common in the United States and, since 1925, it has
been the usual form of mortgage in England and Wales (it is now the only
form - see above).

In Scotland, the mortgage by legal charge is also known as standard
security.
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