Mortgage Financing Example

The mortgage financingIt is one of the most effective financing that exists; This type of financing can be carried out by both individuals and legal entities and represents one of the most widespread ways of acquiring assets, using as collateral the properties of companies or individuals.

Mortgage financing, you belong to the group of long-term financing, and it absolutely requires the drafting of a contract that stipulates the conditions of the property to be mortgaged, the amount to be lent, the amount of interest to be charged and in the case of companies, the representative will be settled.

Mortgage financing example:

The company Muebles el Tropico S.A de C.V requires extra financing to acquire machinery and material; when he found himself with two loan financing in two different banking institutions, the credit bureau prevented him from acquiring another debt by loan, for which the shareholders' meeting approved the mortgage of the assembly and finishing plant, to request the capital correspondent.

They appoint the representative of the company, and they appear at the bank to begin the negotiations.

The bank will appoint a commission that will evaluate the legal and physical circumstances of the property in order to proceed with the authorization for the preparation of the contract, this commission will take a notary public who will attest to everything acted.

The amount to be lent will be set depending on the condition of the property and once this has been completed, the process is formalized.

A monthly, bimonthly or semi-annual payment is set, which culminates in the settlement of the debt, and in this payment includes the applicable interest, which becomes the profit on the mortgage or Bank.

After paying the mortgage financing, the mortgage is lifted, which is to fully formalize the completion of the debt.

This survey is carried out, because without this procedure the debt will not be completely canceled.

The first thing is to ask the mortgage house or bank for a mortgage cancellation letter, and it will be presented before the notary corresponding to draw up a mortgage cancellation certificate that will be signed by the representative of the mortgage house or Bank.

At the end, an act or document will be drawn up that will definitively release the property from the mortgage registry, recovering the mortgaged property.