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I can’t find anything in this forum since 2006 on this topic.
Does anyone have any valuable experience. I am a seller with a $200,000 house to sell. I’m prepared to be flexible but cannot be taking risks.
[quote=”jdocop”]So, what are you asking? If anyone here wants to buy your house?
I think ARCR’s forum has a thread for selling things……maybe Craig’s ListCR, add in the papers?[/quote]NO I am not trying to sell through this forum. I am asking if anyone has experience of setting up a personally financed mortgage or setting up a trust in order to safeguard the title in case of a default in payments. The information and advice I have received so far has been conflicting and I am just seeking to benefit from anyones experience. And before anyone gives the advice to talk to a reputable lawyer, I have already done that.
We have a mortgage granted through Banco HSBC. When we closed, our property, which is held in a Costa Rican corporation, was put into a trust. The reason for this is that it is much easier for the mortgage holder to acquire title to the property if we default. Apparently no foreclosure procedure is required and that removes a lot of legal hurdles.
Beyond that, you need the advice of a knowledgeable attorney.
I would concur with David, I am in a similiar situation. I purchased a home that closed in November 2009, I make payments every six months to the sellers corporate trust. Our CR attorney handled everything at the closing, the transaction went smoother than my property purchasing transactions here in the u.s. I would question the knowledge and legal skills of the attorney(s) that you have consulted.
It is very secure if the mortgage is recorded properly with the national registry.
However–and of course there always is a caveat–there has been a new law passed that specified only certian courts can actually handle these precedings. Therefore, it is very possible that in the event of a foreclosure–if the buyer wanted to be difficult, it could be tied up for a year.
There is another option which is to put the entire proeprty in a trust and this can apparently make things move more rapidly in the event of a default. This does however add an exatra initial setup cost.
If I were you, I would demand at least 30,000 to 50,000 downi want to ask permission to provide the info to the person interested about a secure process to sell the property under the owner financing method.
Its very secure–but if you have to foreclose here–it will probably take a year–unless you put it into a trust
Thanks for all of your comments…with the help of Lic. Jose Manuel Arias in Playas del Coco I think I have everything sorted out and have now sold the house in question.
[quote=”DavidCMurray”]”mortgage”[/quote]
Now why didn’t I think of that?In saying the following I do not knock anyones method of acquiring what is necessary to live the life we live here in Costa Rica. Those of us who are here to enjoy the people and the country, most of us on these foruns, are far different from those who come to take advantage of a poor country and its people with pockets full of cash.
1 – With the financial situation in the world today and little knowledge of the banking or legal systema in Costa Rica.:?
2 – Stories of bank accounts coming up missing cash leaves little faith that any type of transaction handled by the banking system in Costa Rica would be safe.:(
3 – Having two “highly recommended” abogados prove to be corrupt or incompetent with little regard for their clients.
I would have preferred that my old and staid financial institution in the States handle a financial transaction for me but, of course, we all know that they will not for the reasons above.
I do now have an abogado whom I consider to be among the best that Costa Rica has to offer and I would expect that anyone considering buying my property will do as I did.
Come to me with the cash in hand. If you have to arrange a mortgage do so. There will be no papers signed nor agreement made without the cash, in dollars, on the table. No chacks or notes and no good intentions or promises.
Being made wary in your elder years has both good and bad attached to it. I would rather have total faith in my fellow man as I was raised to do but I have seen too many folks with pockets full of screws ready to stick you with them. It is a crappy outlook but necessitated by the few who have little moral merit.
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