Mexico - Mortgage
A mortgage is the most usual and important guaranty within the Mexican credit system. A mortgage on property is governed under State Civil Codes. It is defined as a 'collateral established on property not delivered to the creditor, which entitles the latter, in the event of failure to comply with the guaranteed obligation, to be paid with the value of the property, in the degree of preference established by law'. Even when property is conveyed to another person (by purchase/sale, inheritance or auction under seizure), the property remains subject to the established mortgage.
A mortgage must be established by means of a public deed issued before a Public Notary. A mortgage can only be established by the owner of the property, or someone who holds written power of attorney or representation of the owner for this purpose. The mortgage must indicate the property in question and its characteristics, the name of the creditor in whose favour it is granted, the obligation guaranteed, the amount in which the mortgage is granted, and the interests and terms.
Mortgages must be recorded in its correspondent Public Property Register where the mortgaged property is located, by means of the public deed under which they are established.
Once the mortgagor has complied with the guaranteed obligation or paid the loan, the creditor will cancel the mortgage under a public deed issued before a Notary. The notarial document of cancellation is recorded in the Public Property Register.
To obtain a mortgage loan in Mexico, Paguro recommends that you contact a renowned bank, and that you hire a lawyer specializing in real estate.
Requirements to process a mortgage loan vary from one financial institution to another, but they usually include:
The applicant for the loan must be between 25 and 59 years of age;
The Individual must have provable income.
The individual must be able to provide good credit references.
The property must be located in a residential zone.
There is an investigation fee to be paid. The purpose of this investigation is to determine eligibility for a mortgage.