Mortgages on movables usually involve the encumbrance of a more serious car, motor, truck.
These loans typically provide a few million forints of help, as banks provide up to 80% of the market value of the movable offered.
The debtor is in good standing even if the debtor fails to pay
This ensures that the debtor is in good standing even if the debtor fails to pay: on the one hand, before the mortgage goes down, the debtor has already repaid a larger amount of the loan, and on the other hand, the bank is auctioning off the movable property. So, in the event of a loan default, the bank will retain 10-20-40 percent or whatever the percentage paid before the default, and on the other hand, the bank will eventually auction off the property with a value of 50-60-80 etc. percent.
The interest of any bank that a debtor be unable to pay
Of course, it is not in the interest of any bank that a debtor be unable to pay, but it is rare for a debtor to announce very quickly that he is unable to pay and that is why the bank will fail.
Another problem from the banks’ point of view is when the car, the motor, etc. are parked. the owner, when he sees that he is unable to repay his loan, loses it completely and does not deal with it.
The bank cannot sell the movable property
In such cases, the bank cannot sell the movable property because no one is willing to give it a fair price. Such cars, engines, etc. his fate is to buy them for a nepper pot of money, spend $ 100,000 on his pot and sell them for $ 500,000 or more.
Of course, the buyer of the car gets a good-looking vehicle that he won’t know was a parked car; left by the previous “retired rural doctor.”