Blogging from your ipod/iphone

this is so cool. i can now update myblog using my ipod. I downloaded the application iblog, added my accounts and tada!!!
pros: mobility
cons: keyboard doesnt rotate and i dont think i can add photos .

[Posted with iBlogger from my iPod touch]

PART 2 - LOAN AND SECURITY

2. MORTGAGE

There are two types of mortgage: Real Estate and Chattel. In real estate, the collateral used is a real property. Real property is also known as an immovable property like lots, buildings, condos. In chattel mortgage, the collateral used is a movable or personal property like cars, equipment, etc. This is the most advisable form of collateral any lawyer will advice you.

Usually a clause is inserted in the deed of real estate mortgage allowing the extrajudicial foreclosure of the property. You have to make sure that this is part of your agreement otherwise going through a judicial foreclosure is a tedious process. Also, it is provided under our laws that the interest should be in writing otherwise only the legal interest of 12% is applicable. Make sure that the real estate mortgage is annotated in the title (registered with the Registry of Deeds). Some creditors likewise keep the original title for additional security because under our laws, you cannot prohibit the debtor/mortgagor from selling the property. Note that the debtor and mortgagor can be two different persons.

Chattel mortgages are also allowed to be registered in the ROD.

PART 1 - LOAN AND SECURITY

In this blog i wish to discuss the most common and recommended security for people in the lending business or those who want to engage in it. Naturally, as a creditor, you would want to feel secured that you can go after the debtor if he fails to pay you on the agreed period.

1. ISSUANCE OF POSTDATED CHECKS (PDC's)

This is the most common of all forms of security in extending a loan. Basically, the debtor has to issue postdated checks corresponding to the monthly installment plus the interest. But if the agreement is to pay the loan in full at a fixed period, then the whole amount plus interest will be the face value of the check. In the latter instance, there are some who make use of the rediscounting method wherein they exchange the value of the check with cash already deducting the agreed interest. When paying, the debtor can either deposit in the checking account the payment and ask the creditor to just encash the check or he can pay in cash and take back the postdated check(s) he issued. If he fails to pay, the creditor will deposit or encash the check on its due date.

Thereafter, a criminal complaint for Violation of Batas Pambansa Bilang 22 (Bouncing Checks Law) is filed. B.P. 22 prohibits the issuance of worthless checks. Although issuing a bounced check is a crime, this is frequently abused by creditors. Every now and then, a complaint in our office is filed for this kind of offense only for the purpose of collecting the loan. In short, we become collecting agencies. In my opinion however, this is the most tiring, frustrating form of security or collateral in the lending business. Why so? because even if a case is filed in court against the debtor, you have to wait till a judgment of conviction becomes final before you can colllect. That is, if the debtor has properties which can be executed. There is also no assurance that you can secure a judgment of conviction. For some lucky ones however, the threat of a criminal case forces the debtor to settle the loan. But for those who have nothing to lose, they couldn't care less.

Procedure: Send a demand letter (better if through a lawyer) personally or thru registered mail or private couriers. It is very important that the debtor receives the demand letter. I would recommend hiring a lawyer for this. If there is no payment received within the allotted time period, then a criminal complaint is filed before the prosecutor's office or the Municipal Trial Court/Municipal Circuit Trial Court.