The concept of Mortgage

The concept of mortgage .. Between conventional and Islamic banks


- Salah Bin Fahad Badgers - 11/01/1428 H

One of the terms of the much-talked about with regard to financing the real estate is what is called term mortgage, which has been dealt with and talk about this in particular at a conference sponsored by "Euromoney" which has been at the end of the year AH past and mid-January (January) for 2007, which resulted in proposals to support the idea to facilitate access to adequate housing for every citizen.
Perhaps this is what concerns us here is the concept of mortgage as the entry term mortgage on the financing of private individuals for housing is rather strange, as the mortgage is known as a contract document is not a stand-alone, comes a follower of a contract of sale, loan, etc. and a kind of guarantee that the seller or lender may be able to exercise their right or part of the right when given the authority to act in the eye that is when you do not encumber the debtor's ability to pay.
Perhaps, prompting the use of this term is to use him in the Western model of lending that is the purpose of funding access to residential units, a so-called mortgage contract is a contract loan interest rate to finance personal for housing or real estate in general, and is characterized by this type of loan that type of low-cost, and the secret lies in the existence of the mortgage contract as the taxpayer, a bank mortgage on the property and when there are delays the beneficiary to payment by himself sell the property in the market and then take the share and return to the beneficiary the remainder if there was an amount in excess of the amount required, and this type of loan The low-risk area due to the fact that the taxpayer can recover his right to fully or in part by the mortgaged property, and perhaps the key label this kind of mortgage loans or so-called mortgage in order to distinguish it from other types of loans.
There remains the question about the reason for the entry of this term to the corridors of the concepts traditionally used when financial institutions that provide various kinds of sharia-compliant finance, since it is through a comparison between the mortgage within the meaning of traditional institutions, we find that one type of loan, a loan mortgage, while Islamic institutions that provide various types of funding at both the personal or institutional, for example, with regard to funding for individuals who can offer Islamic financial institutions in the so-called funding through Murabaha, or the so-called funding through the dwindling participation. The same applies with regard to institutional funding could be added to the previous two decades a peace and istisna'a and participation through the holding of speculation.
You see, dear reader, this is for five types of contracts, which ones might be called the mortgage or the so-called Islamic mortgage, and perhaps this brings us back to a kind of dependency in the labels used by Islamic financial institutions, such as the use of the term benefit of interest, and the term Windows Muslim Islamic windows, and the use of the term Islamic products such as Islamic products.

Though in general there is no wrong with the terminology, but do not have to be the label reflect even one way or another the nature of the contract, which has been discussed, and there remains the question whether the concept of mortgage is the same as Murabaha agreement was exercised by the banks today as one of the alternatives is compatible with the Sharia, it is in origin exist, but still the Saudi market, you need to enter into contracts or the so-called additional products to expand the segment of beneficiaries.
Perhaps the most notable of these contracts is called decreasing Musharaka contract is practiced widely as a model for contracts or products compliant with sharia law in Britain, which benefited a large number of Muslims living there, while many financial institutions that provide alternatives to Islamic government in Saudi Arabia is still favor a so-called Murabaha or tawarruq, did not fall within their offers additional contracts may attract a larger number of beneficiaries.
Lecturer at King Fahd University of Petroleum and Minerals, Dhahran
Doctoral student in Islamic finance
Department of Islamic Studies and Middle Eastern
At the University of Edinburgh in the UK

Mortgage crisis, the biggest financial crisis in modern history!!.

Mortgage crisis, the biggest financial crisis in modern history!!.

In our study we remember the Great Depression of 1930 and if it will never bring, and the world learned a hard lesson in that period will not be allowed to happen again.

Then studied the major financial market crises, from Asia to Europe and even Saudi financial market crisis last, and how billions of dollars evaporate into the air not only because of the hysterical cases of the sale.

But the mortgage crisis? Is the gap real, no one expected, especially of the largest and the largest economy on earth, who learn the lesson of the last century and tasted the pain of the Great Depression, the losses and reached the astronomical figure mind can not afford, however, the U.S. economy is standing tall There were no [yet], is a cause for reflection more and more depth in the American economy awesome.
Daquella manera

Thousands of Americans lost their homes, Source: Daquella manera

My friends ask me about the current crisis, like new, they want answers, they want an accurate answer to the entire Net describes the situation in full, and that's exactly can not do any economic, fiscal crises at the moment interfere with the factors and variables related to millions of human psychology to the market.

The current financial crisis began last year and today we see some of the impacts, effects of the painful yet to emerge, the collapse of financial institutions is the beginning of a case of correcting severe and painful for the market, followed inevitably If you do not interfere with the state collapse in all industrial and commercial sectors and stunting economic and check the recession, yes, I said that what is happening is a correction of the harsh market, how? Continue reading.

Bubble? Do you realize what is a bubble, what beautiful is to grow and grow, they continue to inflatable and you know they explode, but nevertheless continue to inflatable, then in one moment to explode, and fade, as if something is not, the bubbles are numerous, notably bubble dot. Com in collapsed in 2001, where all the Internet companies did not remain only a few companies are on the fingers, and the Internet bubble was the main engine for the emergence of the so-called companies on the Web 2.

Bubble is the current bubble, real estate, U.S. real estate, which reached their prices to the sky and continued to rise, everyone wants to invest in the market, but hey any investment requires the purchase price and selling at a higher price of it, and whatever you intelligent would reach the stage they will find buy from you Bsark higher, and here forced to sell at a lower price than I bought here is exactly the start the wave of low prices.

This is one of factors of lower prices based on demand and supply, there are other factors, such as the situation of political and labor market and others, it is important that real estate prices began to decline.

But before dropping the prices of these properties, which had been financed with loans poor without adequate safeguards are called mortgage-poor compared to high interest rates are not fixed to cover the risk, when applying for a mortgage bad grant you a bank in return for ownership of the house which will be constructed, with a high interest rate variable.

Of course, here in the real estate prices rising, it is a bargain, my son one million and the sale of one million and a half, but what if you want to sell and the price of the house half a million?.

When you fall in property prices, the bank will raise interest rates to cope with potential hazards and raising the value of the premium which you must pay, and with the low price of your home will not be able to pay for a long time, be announced bankruptcy, and his bank Btrdek from home and offer it for sale through public auction, the problem is that cases Bankruptcy and reached hundreds of thousands with the view of hundreds of thousands of homes for sale, the price will drop further down than it, thus creating bad debts of the bank, any bank could not collect the debt owed.

Bank can not continue if there was no depositors, and when he declares the bank bad debts in the millions first thing in the morning by a customer, is to go to a bank and withdraw your balance of it, Vnevsip human instinct to do so if they deposit accounts insured by hundreds of times.

But when it is more of drag Bank is exposed to sudden withdrawal is unexpected, is not enough liquidity, which has to cover the sudden withdrawal, you may borrow from other banks such as the central bank, and here to read in the Journal of Finance, the Bank, which invests in shares had been borrowed from the Central Bank, uneasy you investor fear, and start selling like crazy situations in the stock market to get rid of the shares of the bank, the bank's shares represent capital, thus reducing the share price, and lowered his capital.

Vitalibh the central bank to lift its own capital, however, that buying someone shares that were sold, or the issuance of new shares, or declared bankruptcy, and his Chairman of the Board shuttled either to obtain loans and facilities, or merge with another bank, and if not, is declared bankrupt the bank and ask protection, Vihrk central bank to buy shares of the bank was buying up to 80% of its shares and therefore the bank becomes a public institution!!.

But if the central bank did not act to protect the peace, the bank, the commencement of liquidation and payment of creditors in order, may end the bank's assets are not sufficient to cover the benefits of creditors, especially creditors ordinary [ordinary shareholders] and, consequently, the loss will be realized.

When the collapse of banks may be hard to get a loan, and that the cost of borrowing by credit card are high, the lower the liquidity of the individuals and Inmkc consumption Vtaatkds goods and a recession might be, unless the Central Bank intervention and [what happens] Dhakha trillions of dollars into financial markets and for banks to facilitate the lending process and to maintain the existence of consumer activity, so for fear of a recession.

Well, we understood all of the above, but why does it continue financial collapses, why not stop at the bank, why?!, This is what was going to say in the post following, God willing.

second mortgages

second mortgages
(The right of third parties)



Article XXII:

Applies to the impact of mortgage registered against third parties from the date of registration, unless they win this third party a right in rem on the mortgaged property before registration of the mortgage.

Article XXIII:

Limited impact on the mortgage debt specified in the mortgage document.

Article XXIV:

Not been invoked in the face of non-contractor transfer mortgage debt secured by the Registrar or the assignment of rank only after being in the right to the original document and record the property.


(Right of progress)

Article XXV:

Determine the ranking mortgage number and the date of his registration record, and maintains Bmrtpth even restricts what evidence expiry of the competent authority in a system register.

Article Twenty-Six:

Pledgee creditor may waive mortgage arranged by his debt to the mortgagee another mortgaged property in accordance with the provisions prescribed in the assignment of rights.

Article Twenty-Seven:

If the property subject to a number of hostages in succession, meet their rights or the price of the money that was replaced in accordance with the ranking of each and every one of them.


(Right trace)

Article Twenty-Eight:

Creditor mortgagee the right to follow the mortgaged property in the hands of any holder has to meet the right solutions when it met in accordance with a demotion.

Article Twenty-Nine:

Is the holder of the mortgage each moved it after the mortgage for any reason the ownership of the property or any other real right by the subject of the mortgage without being personally liable for the debt secured by mortgage.

Article Thirty:

Mortgagee subject to the creditor to take action, recording of forced removal of ownership of the mortgaged property and sell it if the debtor fails to fulfill the specified term, after warning the debtor and the holder of mortgaged property in accordance with the system.

Article XXXI:

The holder of the mortgaged property to lead the mortgage loan and expenses after being warned, to be played back, including the debtor, and may replace the creditor who met his religion in all its rights.


Article Thirty-Two:

The holder of the mortgaged property right of ridding it of all the registered mortgage, and remain right in the performance of religion persisted until the date of the sale of the mortgaged, or a system in a timely manner, and can pay back with the current.

Article Thirty-Three:

Proceedings are forced removal of ownership of the mortgaged property and sell it when you do not meet the debt according to the system implementation.

Article XXIV:

May be the holder of the mortgaged property to enter into action to sell in the auction, if awarded the auction and had led the price, counting the owner of the property under the deed of ownership of the original, and purifies the mortgaged property from all registered right by if you push the Nobel price awarded the bidding him or put him in the Court's account.

Article Thirty-fifth:

If you had won an auction sale of the mortgaged property to non-nuclear, it gained ownership by virtue of a decision by the anchoring of the auction, and has the right of the holder, whether they entered the holder in the auction or not to enter.

Article Thirty-sixth:

Guarantee of the mortgage on it was under his hand, would ensure winning everything that happens to the mortgaged property from loss or deficiency or defect, and yield response of the mortgaged property after the date of expropriation.

Article Thirty-seventh:

If the increased price of the mortgaged property to the value of the debt recorded increase was for the holder.

Article Thirty-eighth:

The holder of the mortgaged property may object to the debt, which sell the property because of all that was the debtor may oppose it if the debt yet registered title holder.

Article Thirty-ninth:

A - refer to the holder the pretext of security to the previous owner to the extent that it is due back on the property it received from the netting or a voluntary contribution.

B - the holder of recourse against the debtor to pay over and above what is owed in his duty under the deed right, whatever the reason to pay this increase, and replaces the creditors who understand their rights in their rights by the debtor, including their insurance provided by the debtor, without Insurance provided by someone else.


Chapter III

Expiration of the mortgage

Article Forty:

A - continued for the mortgage debt, mortgage Vinevk lapse of all religion trusted.

B - If the debt has passed, then returned for any reason to remain positive, he returned as re-entry of mortgage debt, without prejudice to the rights of others of goodwill acquired in the period between the expiration of the right and return.

Article Forty-first:

A - of the debtor that religion plays a mortgage and accessories documented before in order to meet according to the contract or agreed upon Almtdainun.

B - may accelerate the fulfillment of Mtdainin debt in return for placing part of its value according to what they agree upon when the inferior agreement independently.

C - If you find a debtor has sold the Tribunal mortgage before the term all, ordered the payment of premiums the case to creditors and deposited the rest of the money in a bank account, and the debtor to apply for the release of the amount, if agreed with the creditor on the mode of payment or provided a bank guarantee for the payment of the rest of the debt

Article Forty:

Invalidate foreclosure sale of the mortgaged property in accordance with a forced sale of the system, and paid to creditors in accordance with the dependent status of each of them, or deposited in the account of the Court.

Article Forty-third:

Expires mortgage registered at the Federation of disclosure, meeting the right mortgage with the right of ownership in the hands of one person, whether the transfer of ownership of the mortgaged property to the mortgagee, or transfer the right mortgage to the current, if the cause of the merger had a hope of recovery retroactive effect; back the mortgage to his condition.

Article Forty-fourth:

Lapse if the registered mortgage creditor mortgagee waiver for a waiver documented, and may waive the right mortgage with the survival of religion.

Article Forty-fifth:

Expires mortgage registered doom replaced, taking into account the provisions of the loss of the mortgage provided for in this system.

Article Forty-sixth:

BET and the holder of the redemption request after hearing a case documented by the mortgage debt set forth in other systems.

Article Forty-seventh:

Does not invalidate the death of the current mortgage or mortgagee or loss of eligibility, has died, the heirs, but has eligibility for canine guardian.

Article Forty-eighth:

With the exception of securities, apply the provisions of the mortgage recorded on the Register, which has transferred a regular basis, by car, ship and plane, and others, this system eliminates the provisions of the mortgage business that are incompatible with it.

Article Forty-ninth:

This system published in the Official Gazette and shall come after ninety days from the date of publication

Bad credit remortgage - know the truth -

Are you suffering from negative credit rating? If the answer is yes, then, you probably know how difficult life can be a financial center is not so good. However, you should not lose hope because it is certainly not the way to get out in your current worry that you can consider. A matter of fact, you can take into account bad credit remortgage in dealing with your credit situation awful. You only have to make sure you get on a remortgage, which offers an excellent, such as low interest rates, low risk, and the repayment period appropriate. In doing so, you can be sure that you can take full advantage of your remortgage.

Frankly, there is already a lot of lenders in the United Kingdom who are willing to provide bad credit remortgage for people like you who have a credit rating of a terrible situation. However, looking for the best deals as well as the lender is not an easy task to perform. In this regard, there are certain important things you should do. First, you need to start improving the status of your credit by linking in any way. This is essential to be able to end up with the excellent remortgage lender who is willing to provide you with special deals. In addition, you also have to explore your options when it comes to remortgage for bad credit. You can do this by inquiry already in local banks or by simply surfing the net. Once you have some options at hand, You now need to compare prices, prices, interest rates in order to reach a decision regarding where you will benefit from your loan remortgage.

In fact, bad credit remortgage is what you need to improve your current credit. All you have to do is search for a lender remortgage most excellent or provider as well as deals in order to achieve maximum benefit from the loan to the owners of remortgage bad credit. You can do this by simply keeping effort in mind the many things that you need to do.

Refinance your mortgage and Wells Fargo - Is now a good time?

If you have a Wells Fargo you can mortgage refinance or modify loans, your mortgage under the modified Home prices are reasonable, which is part of the legislation sweeping developed by U.S. President Barack Obama in 2009 under the Economic Recovery Act. Wells Fargo mortgages serviced by Fannie Mae or Freddie Mac to qualify for refinancing under the plan, mortgages, and many also qualify for a loan modification. To make right now is the time to Refinance Your Mortgage and Wells Fargo, especially if you pay more attention than you can, or fear that you might be able to pay the amounts on your mortgage variable recently that the rate of modification to the exchange rate again.

Refinance your mortgage and Wells Fargo now

If you have a Wells Fargo mortgage eligible for refinancing, you must meet certain guidelines in order to refinance. At the outset, you should be refinancing your mortgage on your primary residence where you live. You must have sufficient income to make payments on a mortgage, which will be determined by figuring out your income to debt ratio, which looks at household income received and invoices issued. Must not condemn more than 105% of the value of the home mortgage loans, which are determined on the basis of the values the home region. Mortgage your new will be funded either fifteen or thirty years at a fixed price. Average rates that are received by those who are re-financing as low as 2% but on average about 5%.

Amendment and Wells Fargo Mortgage Loan

Some homeowners are not eligible for refinancing of their home because they owe more than 105% of the value of the home, and this is usually due to declining real estate values across the country, and is particularly true of the mortgages written in the past 5-7 years. If you are qualified to meet the loan modification, you can modify your Wells Fargo mortgage loans to be more favorable conditions that will allow you to make a payment small monthly payment for a longer period of time, and get a lower interest rate that will make your home loan more affordable.

Only mortgages that were written before January January 2009 will qualify for assistance, should be to modify the mortgage on the house you live in and consider to be your primary residence. Must owe less than $ 729.750 in your home, and be prepared to provide the lender with the documentation of your income. Another important part of the amendment under a loan for the 2009 Economic Recovery Act is submit an affidavit of hardship, which gives the lender an idea of why the government, which collapsed in financial difficulty and unable to pay your mortgage payments. Be ready to provide income tax returns and paystubs, as well as your previous two months bank statements for checking and savings accounts.

Now is the best time to refinance, or amendment to Wells Fargo Mortgage

Although the refinancing rate is expected to remain low next year or so, with the economy in such an ambiguous situation, now is the best time for you to consider the refinance or modify your existing Wells Fargo mortgage. Lock in the proportion of good and also receive help defray closing costs (the government) by refinancing mortgage loans now your.

Economy and business economy mortgage crisis

Encouraged the boom in the U.S. housing market between 2001-2006, the banks and lending companies to resort to real estate lending (French - Archive)

Mortgage crisis is a serious financial crisis surfaced suddenly, triggered initially by banks scrambling to high-risk loans, the crisis began to grow ice ball to threaten the real estate sector in the United States banks and global financial markets to pose a threat to the global financial economy.





How it happened?

1 - encouraged the boom in the U.S. housing market between 2001-2006, the banks and lending companies to resort to subprime mortgage, which give borrowers loans without sufficient collateral and high risks in return for a higher interest rate, the goal is to maximize profits for the institutions lending.



2 - expanded major financial institutions in granting loans to real estate enterprises and construction companies, which increased from seven hundred billion dollars.



3 - The high interest rate to a change in the nature of the U.S. market, a decline in house prices and the growing number who are unable to repay their mortgages in the United States.



4 - There were signs of the crisis on the surface is evident with the beginning of 2007, with the increasing incidence of cessation of payments, and increasing phenomenon of seizure lenders for real estate, and frequent clashes between borrowers and banks.



5 - swallowing volume of defaulting loans to members about a hundred billion dollars.



6 - The number of houses offered for sale in the United States 75% in 2007, which numbered 2.2 million, which represents about 1% of the number of housing units in the United States as a whole.



7 - weakened the ability of banks to finance companies and individuals, which led to a decline in investment spending and consumption, and threaten to cause a recession.



8 - Link has a large number of financial institutions, particularly in Europe and Asia, the U.S. financial market to the transfer of the mortgage crisis from the U.S. to Asia and Europe, to evolve into a bigger crisis become known as the global financial crisis.


Attempts to save the

1 - the world's central banks in the United States, Europe and Asia injected about 326 billion dollars in their financial systems, to protect the global financial system from collapse.



2 - The U.S. Senate approved a bill to protect property owners provide a three hundred billion dollars used by the Federal Department of Real Estate to refinance mortgage loans, private real estate staffing.



3 - The Federal Reserve (the U.S. central bank) to reduce key interest rates by 0.75% at one time, up to 3.5%, to meet the growing unrest in global financial markets. Was then gradually reduced to 2%.



4 - in Europe, governments have agreed Netherlands, Belgium and Luxembourg to invest the amount of 11.2 billion euros in the enterprise "Fortis" for financial services, which means practically nationalized.



5 - ten international banks agreed to establish a fund of liquidity, capital of 70 billion dollars to address the most pressing needs, while the central banks agreed to open the areas of credit.


Repercussions of the crisis
1 - the bankruptcy of a number of mortgage companies such as American (New Century Financial Corporation ", and" American Home Investment Morgij).

2 - the tendency of many real estate companies to lay off a large number of its employees, and between these companies was Countrywide, the largest mortgage lending institutions in the United States, which decided to lay off a fifth of its staff by 12 thousand jobs to cope with about 1.2 billion dollars of losses suffered in the mortgage crisis.

3 - between two to three million Americans are at risk of losing their homes.

4 - Company (Merrill Lynch) U.S. investment incurred a loss of 14.1 billion dollars.

5 - Bank of America buys four billion dollars worth of Countrywide and Bank supported the largest financier of mortgages in the United States, a move that would avoid one of the biggest collapse in America by the housing crisis.



6 - stock markets have deteriorated to such dangers as the crisis spread, while several major banks announced a significant drop in share prices.



7 - European banks have decided to freeze all funds operating in the field of real estate in the United States, which froze the bank (BNP Paribas) is the largest Bank of France is listed on the stock exchange worth of investments (2.3) billion dollars.



8 - Bank (ie to my Inadstre) German suffered the loss is estimated at 954.818 million U.S. dollars.



9 - British government to nationalize the bank "Northern Rock" for real estate finance to prevent bankruptcy, the first time since the seventies of the last century, that is the nationalization of a British company.



10 - JP Morgan Chase Bank announced the acquisition of the American business, "Bear Stearns" at a low with the financial assistance of the Federal Reserve.



11 - Citigroup has sold 7.5 billion dollars of bonds to the Abu Dhabi Investment Authority UAE government.



12 - Bank losses Swiss bank Credit Suisse reported a record.



13 - The Japanese government announces that the loss of their financial institutions as a result of the crisis of mortgage loans doubled to 5.6 billion dollars last three months of last year.