What are they?

A mortgage is a notarized document formalizing an agreement whereby a bank typically provides a person with a fixed sum of money to be repaid, along with interest, through regular payments over a specified period. The borrower guarantees repayment to the bank by offering real estate as collateral.

Types of mortgage procedures

• Mortgages

Contracts in which a person guarantees the payment of a debt or obligation with an asset, usually real estate. In case of default, the property can be auctioned to satisfy the debt. Mortgages allow for financing for various needs. The mortgage holder has the right to choose the notary who will advise them.

• Mortgage cancellation

This involves registering with the Property Registry that a mortgage debt has been paid off so that it appears free of the encumbrance. It requires paying the corresponding taxes and registering the change with the Property Registry.

• Novations and Subrogations

These are modifications to a mortgage that may involve changes to the mortgage debtors, the lending institution, the term, the principal, or the interest rate, among other things.

• Preliminary Transparency Agreements

These are notarial records related to consumer mortgages, where the client can discuss the mortgage terms with the notary calmly and without pressure. This notarial service is free of charge and only involves the client and the notary.

• Deeds in Lieu of Foreclosure

These are contracts in which property is transferred in exchange for the extinguishment of a previous debt, thus releasing the previous debtor.

In what situations can this service be used?

A mortgage loan can be used in various situations, including:

• Buying a home.

• Home renovations or improvements.

• Debt consolidation.

• Acquiring land.

• Financing real estate investments.