Financial organizations, in the majority of cases, will only agree to finance your real estate project if they obtain a guarantee that protects them in case of impossibility on your part to meet the deadlines. The guarantees you will have to meet will generally be:
- The 1st rank mortgage: Allows the lender, in the event of default, to seize the property object of the loan to cover the outstanding balance. And this, by judicial way.
- The collateral: The borrower gives a property as collateral for the debt he contracts. This may be securities, a business, shares in society, works of art, etc.
- Guarantees: The lending institution may accept that one or more third persons stand surety. The latter are called "guarantors" and will assume the repayment of the debt in case of default. The deposit automatically extinguishes with the settlement of the last maturity of the loan.
- Social Fund Guarantees
To support the national strategy to reduce the social housing deficit, special guarantee mechanisms have been designed to provide access to housing loans on favorable terms.