Thursday, May 21, 2009

Tamweel to begin sale of re-possessed properties

The largest home-lender by volume, Tamweel, is also the first to sell re-possessed properties on completion of legal formalities.

Due to legal uncertainties, mortgage lenders were hesitant to hold forced sales or auctions during the past, as the system has never been tested. Instead, the lenders have negotiated with distressed mortgage customers to try and recover some capital to avoid costly legal proceedings.
According to Mohammed Sultan Thani, the Assistant Director General at Dubai Land Department, no repossessions have been completed by UAE banks, which would oversee the sale of any re-possessed properties under the Mortgage 2008 Law. The banks are seeking to resolve things on their own.

The Chief Executive of Tamweel, Wasim Safi, said that Tamweel would go ahead with the next step of disposal of properties, after completing the legal procedures of foreclosure. In fact, Tamweel has already begun foreclosure process for few customers, Saifi added.

He agreed that a growing number of mortgage customers were behind with payments. Amlak and Tamweel account for more than half of the mortgage market in the country, worth about Dh.35bn. The rest Dh.25bn is divided among Abu Dhabi Commercial Bank, HSBC, Emirates NBD and Standard Chartered and several smaller players.

Both Amlak and Tamweel had stopped new mortgage lending in November, when trading in their stocks were suspended. They will shortly receive approval to restructure and secure their financing within a few weeks, revealed Sheikh Khaled bin Zayed, Chairman of Tamweel.

No comments: