In real estate mortgages, on the one hand, the outstanding loan balance, and on the other hand the value of the real estate mortgage, the lender requires that, in order to guarantee the full and timely recovery of the loan, the value of the real estate mortgage be greater than the outstanding loan balance, both at the time the mortgage is created and when the mortgage is realized, and during this period。
Theoretically, therefore, the value of the mortgage should be deducted from the balance of the statutory priority payment at various points during the period of the mortgage, particularly in the event of the debtor's failure to perform its mature debt or where the parties agreed to realize the mortgage。
The statutory priority payment (the important concept) assumes that, when the mortgage is realized, the amount that already exists by law takes precedence over the amount paid for the current mortgage. These include the amount of the claim secured by the mortgage, the amount owed by the offeror to the contractor for the construction works, other statutory priority payments, but exclude the costs of litigation, the cost of valuation, the costs of the auction and the costs and taxes, such as turnover taxes and surcharges, incurred to realize the mortgage. It's important
How to remember: the projects included are divided into three categories of people in order to ensure a normal market order
Amount of claim secured — mortgage people
Unpaid price for construction work — to provide the construction party with a normal construction market order
Costs allocated for land use for construction, increase in volume and replenishment of land use - to the government
Items not included are treated uniformly after the auction. Costs of litigation, valuation costs, auction costs, turnover tax and surcharges and taxes。
However, in the actual real estate mortgage valuation, since the date on which the mortgage was created, the duration of the loan, the manner of repayment of the loan, whether the debtor was repayable on time, and the conditions necessary for the valuation to be auctioned, the date of sale, etc., at the time of repayment of the mortgage, the mortgage value assessment can only evolve into an assessment of the value of the mortgage property that, at the time of valuation, assumes that no statutory priority was established, less the balance of the statutory priority payment。
Typically, it is a specific date during the valuation operation, in particular during the field survey of the object of the valuation (e. G., the date of completion of the field survey of the subject of the valuation), assuming that the value under the statutory priority entitlement has not been established less the statutory priority payment known to the valuationer。
The statutory priority payment at that time is the amount that would have been legally superior to the amount being paid for the mortgage if it was assumed that the mortgage would be realized at the time of value。
In order to remedy the shortcomings of the mortgage value assessment and to guarantee the full and timely recovery of the loan, the valuation of the real estate mortgage was required to include “a liquidity analysis of the valuation object”, indications to the users of the valuation report that “the position of the object of valuation and the likely effects of the real estate market conditions on the value of the real estate mortgage due to time changes”, and that the value of the real estate mortgage would be reassessed periodically or at a time when the real estate market prices were changing more rapidly”。
When the mortgage value is less than the outstanding loan balance, the mortgagee should require the mortgagee to provide security or early satisfaction of the obligation equivalent to the insufficient value。
Mortgage line = mortgage value x loan count
Mortgage value = value under no statutory priority right = value under no statutory priority right = value under no statutory priority right = amount of claim secured by mortgage = outstanding construction price = other statutory priority payment
If the mortgaged real estate is re-encumbered, the collateral value may be described as re-encumbrance value, specifically:
Re-mortgage value = value under no statutory preferential right — mortgaged balance/social general loan balance — outstanding construction price — other statutory preferential payment
Thus, the mortgage value is neither the “full value” of the statutory priority payment, nor the “full value” or the “net value of the collateral” after a discount of the loan value (mortgage rate) or the “collateral value” after the cost of the expected realization of the mortgage and the tax。
