What is a second mortgage?
It ensures the promoter for the event that the purchaser is unable to meet part of the house price, which payment is postponed after the granting of the deed.
Is called the second mortgage because it formalizes the loan after writing mortgage credit institution financing the purchase of houses, is registered in the Land Registry even after the mortgage credit institution. It differs from the condition subsequent that, before a buyer’s default, the implementation of the second mortgage is the auction of the property while in no condition subsequent auction, but that the property becomes the property of the promoter.
Of the proceeds from the auction, first paid to the credit institution and, if left over is paid to the promoter.
Little Real Estate aware that this formula is employed on a short-term by some developers as a solution to its housing stock. From Little Real Estate doubt that such measures are sustained over time to a downward valuation of housing
