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Archive for the ‘Financial risk’ Category

It is an act by which a debtor makes payment by way of a benefit to a creditor, who in turn may accept or reject reach a solution that provides for the debt. It’s when you give money or any compensation either in fulfillment of an obligation to give, do not do.

In practice it is used to apply a final payment by a debtor to a home mortgage, where they supply the property instead of money in order to get rid of debt. Among other items may say it is a legal concept that is often given in times of crisis where fundamentally affects mortgages. As an example we can cite: a person who approaches the bank and handing over the keys of your home in lieu of payment, thus leaving out of debt.

However, financial institutions may accept or reject the lieu of payment. At first it was accepted without problems but the reverse is true when the market value of homes involved is below the outstanding debt. If you propose legally, is an award of the mortgaged property to the impossibility of fulfilling an obligation. With respect to the giving of mortgage payment to the debtor is left free of obligations.

However, financial institutions may accept or reject the lieu of payment. At first it was accepted without problems but the reverse is true when the market value of homes involved is below the outstanding debt. If you propose legally, is an award of the mortgaged property to the impossibility of fulfilling an obligation. With respect to the giving of mortgage payment to the debtor is left free of obligations.

Sometimes what is done is that the mortgages signed a lease to continue occupying the home, but in character tenant. Furthermore, the process involves a valuation of the cost where it should assume the mortgage. Once you have determined the value of the bank may accept or reject the Foundation, which will depend on the value resulting from the appraisal. No doubt this is an important decision that should a person mortgaged, whichever analyze all the alternatives before taking out or not.

Perhaps we can use an external funding source or find a solution that will continue to meet their obligations.

The word risk is often used in situations that involve some type of uncertainty, where the probability of a particular event or circumstance can be significant. In these cases the financial risk considerations may be favorable or unfavorable, but it is common for people to perceive it as a possibility of injury or an unfortunate circumstance.

In economics, the financial risk considerations allow us to know how the gains obtained by individuals and especially in a competitive environment. In reality, the economic activities in general have some type of risk, of course they differ in the intensity and the degree of predictability. Read the rest of this entry »