How the Government Agency mortgage loan guarantee works
Social Institute ex Government Agency mortgages are building mortgage loans disbursed by Social Institute Public Employees Management in favor of public employees and pensioners. It is a saving opportunity for beneficiaries, who can get credit on favorable terms. but how does the Government Agency mortgage loan work?
Since these are mortgage loans, the Social Institute ex Government Agency loans provide for the signing of a real estate mortgage. Mortgage that must be of the first degree and is turned on on the property subject to a mortgage.
The Government Agency mortgage loan is the guarantee of financing. In other words, the mortgage guarantees the repayment of the principal granted with the mortgage. For access to credit, therefore, it is essential that the applicant must grant the social security institution a voluntary first degree mortgage.
Mortgage which in the case of mortgages jointly with married couples must be provided by both holders of the loan agreement. However, in the event that only one of the spouses has the necessary requirements to access the Government Agency mortgage, the second spouse intervenes as a third mortgage giver.
In this case both the mortgage holder and the third party mortgage lender must provide the mortgage. The spouse intervenes in the contract, as a third mortgage employer, before the notary.
Value and renewal of the mortgage
As regards the value of the mortgage used to guarantee the mortgage, this must correspond to twice the amount disbursed with the loan.
It is necessary to specify that in the event that the mortgage has not been paid off on the due date of the mortgage, or there are still credit reasons in favor of the social security institution, the borrower is obliged to renew it. The costs of renewing the mortgage are borne by the beneficiary. In case of non-renewal, the loan agreement is terminated.
Finally, remember that there is a possibility in which the beneficiaries of the Social Institute ex Government Agency loans can take out a second-degree mortgage to guarantee the loan. This, however, only on condition that the mortgage is required to meet the costs of renovating the house and the property subject of the works, a first degree mortgage has not already been registered by Social Institute.