The title work should tell you if there are delinquent real estate taxes, or you can obviously do an online search to determine this. It is important that you know the status of property taxes to compel the borrower to pay taxes during the leniency period. And just because such guarantees already exist in commercial transactions, where degradation is not prohibited, does not mean that this is no excuse. Private agreements governing business-to-business trade (for example. (b) the establishment of collateral clearing systems or the obligation to grant valuables to the lender in the event of a default of a pre-fixed sum) are a common practice in the business. Finally, negotiations between business leaders are not covered by consumer protection law. Mortgages are essentially civilian loans. In the search for an alternative to mortgages, financing systems that have proven uneven in the past should not even be considered. For example, all systems, based on the comisorio pact (a conditional dilapidation agreement under which the lender takes immediate possession of the security and returns them after payment, prohibited by the Civil Code, Article 1859), systems based on the transfer of ownership to a trustee as collateral (subject to the transmission for debt relief), leniency sales and sales with a resale contract for credit guarantee – all this is out crawling. Although such agreements are still used in some parts of Spain (pacto comisorio in Navarre and letters of grace in Catalonia) and, although they can be considered very good credit protection, agreements such as these (financial institutions) allow for an abusive imbalance with consumers in contracts. Worried borrowers tend to hope that financial problems will disappear and resolve themselves over time. Secured lenders often do the same when problems arise with their borrowers.
Rarely, however, such problems are resolved without immediate and special attention. Red flags – such as declining cash sales, wholesale loss, incapacity or management change, non-compliance with budgets and forecasts, surplus requests, basic credit problems and non-payment as agreed – require immediate reporting, assessment and attention.