It has been held that common law countries perform better than civil law countries, partly because judges are more independent of government and hence make more market based decisions. [1]
The secured creditor already gets priority over other creditors.[2]
The law of countries in the Civil law tradition like that of South Africa makes the distinction between rights in rem and in personam and mortgages creates a right in the assets of property owned by another. [3]
1995 Czech law said that mortgages could only be for up to 70% of the loan to value. [4]
In Greece, due to the expense of registration, banks don’t usually obtain mortgages on property but use prenotation, converted into a mortgage on default. [5]
Under Article 9, the lender can take possession if this can be achieved without a breach of the peace. [6]
In the Georgia, Poland and Russia system complex and yields proceeds well less than market value. Dahan and Simpson Secured Transaction Reform and Access to Credit 187
In Bulgaria, Croatia, Georgia, Hungary, Poland Romania and Russia proceeds were 50-80% of market value. [7]
In January 2007, residential and commercial mortgages in South Africa totaled R694.1 billion[8]
Non bank originators, such as SAHL and Mortgage SA at one stage were getting 50-60% of all residential mortgages granted. [9]
China’s outstanding residential mortgage loans increased 142 times from 1997 to 2007, or 64% a year, on average, to reach RMB 2.7 trillion at the end of 2007. By the end of 2007, mortgage loans accounted for 82.5% of total outstanding consumer loans. In 2007, the ratio of mortgage loans to GDP reached 10.9%, compared with only 0.2% in 1997. According to the mortgage survey of 20 big Chinese cities conducted by the PBC in 2007, the average size of a home mortgage loan is RMB 274,000, the average maturity is 15.6 years and the average down payment is 37.4%.[10]The level of mortgage bonds in 2007 was already double the 2004 level , 3.5 trillion compared to 1.5 trillion (RMB).[11] By 2011, it had doubled again to RMB 7 billion.
Shen Bingxi and Yan Lijuan Development of consumer credit in China BIS Papers No 46
[1] McCormack Secured Credit and the Harmonisation of Law: the UNCITRAL experience 60
[2] McCormack Secured Credit and the Harmonisation of Law: the UNCITRAL experience 70
[3] Moojen and Van Sint Truiden Bank Security and Other Credit Enhancement Methods Argentina 3, Austria 33, Brazil 73, Denmark 121, France at 146, Greece 172, Spain at 363, Indonesia at 197, Japan at 230, Germany at 157, Luxembourg 257, Portugal at 326, Switzerland at 396, Turkey 17
[4] Moojen and Van Sint Truiden Bank Security and Other Credit Enhancement Methods 110
[5] Moojen and Van Sint Truiden Bank Security and Other Credit Enhancement Methods 110
[6] Moojen and Van Sint Truiden Bank Security and Other Credit Enhancement Methods 439
[7] Dahan and Simpson Secured Transaction Reform and Access to Credit 187
[8] Shikar et al (Ed) Mortgage Markets Worldwide 184
[9] Shikar et al (Ed) Mortgage Markets Worldwide 185
[10] Shen Bingxi and Yan Lijuan Development of consumer credit in China BIS Papers No 46 51
[11] Shen Bingxi and Yan Lijuan Development of consumer credit in China BIS Papers No 46 53
In China, banks, from 2004 according to a ruling by the People’s Supreme Court, can only repossess properties but not sell them[1] in contrast to Article of the Guaranty Law which applied from 1996.[2]In India, the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 makes it possible to foreclose mortgages without approaching a court.[3] Previously, the process took more than 10 years. [4]
Higher loan to value loans are usually funded through insurance [5] Coverage is usually 20-30% of the loan amount.
There is also asymmetric information in the sense that the borrower knows more about his default risk than the lender.
Macro-economic stability, removal of public housing subsidies , titling and registration systems, credit bureaus, enforcement efficiency, government commitment not competition.[6]
[1] Ben- Shahar et al (Ed) Mortgage Markets Worldwide 18
[2] Article 53 Guaranty Law
[3] Article 53 Guaranty Law
[4] Article 53 Guaranty Law
[5] Ben- Shahar et al (Ed) Mortgage Markets Worldwide 107 – with respect to the Israeli system.
[6] Ben- Shahar et al (Ed) Mortgage Markets Worldwide 271-275
Homesteading acts and similar provide that the home cannot be used for unsecured debts through gaining an order like in SA and in England since Charging Orders Act 1979
There is a theme in law to see the woman as the dependent rather than as a co owner or occupier in her own right
600,000 properties lying empty in the UK! 100,000 in London[1].
The vast majority are privately owned but the 75% of the squatters are in local authority accommodation.
and Time (1962).
26 ‘The way in which you are and I am, the manner in which we humans are on the
earth, is Buan, dwelling. To be a human being means to be on the earth as a mortal.
It means to dwell … man is insofar as he dwells.’ Heidegger, Being
and Time (1962). (1951), n. 24,
part I.
[1] Legal Studies, Vol. 27 No. 2