Second Mortgages

[charlie M.]

Hello to you all,

Here is my problem:

A friend of my asked me to give him a second mortgage on his new house. I did a couple in Canada and I know that in the case he is not paying I can forclose on his house for the outstanding amount. Is this the case here in the D.R.? What can I do to protect my money?

[planner]

I can tell you that most people here don't have first mortgages because of the high interest rates. How on earth could he afford a second mortgage at the much higher rate.

Personally, I would not touch this!!!!

[TimInDR]

Originally Posted by planner

I can tell you that most people here don't have first mortgages because of the high interest rates. How on earth could he afford a second mortgage at the much higher rate.

Personally, I would not touch this!!!!

friends... mortgages... hmm.... sounds like a great way to quash the friendship to me. I'd shy away.

[Fabio J. Guzman]

Recording a mortgage involves the following:

1. Mortgage Agreement between debtor and creditor authenticated by a Notary Public.

2. Payment of recording taxes (approx. 1% of the value of the mortgage).

3.Taking the Certificate of Title of the debtor-owner with the Mortgage Agreement and the tax receipts to the Registrar of Titles.

Second mortgages are possible except when the debtor-owner has expressly renounced in the first mortgage agreement to assume a new mortgage.

Once recorded, the holder of the second mortgage can begin foreclosure proceedings on the property if the debtor does not pay the debt as agreed.