Loan without title

[Lucius]

Pwede ba yun? Kunwari you own a certain property but walang title ung land kasi hindi pa pinapatransfer sa pangalan?

[ghosthunter]

doubtful. Without the title, there is no LEGAL proof you own the property.

[ab_initio]

Pwede ba yun? Kunwari you own a certain property but walang title ung land kasi hindi pa pinapatransfer sa pangalan?

some lending institutions do that. they accept tax declaration coupled with a deed of sale where the title of the prior owner is appended to. the only caveat here is in the case of double sale. patay talaga...

[Altis6453]

This really depends on the due diligence of the financing institution and the amount of risk they are willing to accept. Take note that the torrens system is quite young in terms subjecting all lands, public or private to land titling so, not all lands have TCT's or OCT's.

So, these financing institutions will have to make do with a CLOA or a land patent application with a Deed of Assignment from the grantee or applicant.

[Galactus]

Non-banks pwede (financing companies and credit cooperatives). I worked for a confederation of credit cooperatives before and we advocated the non-acceptance of Tax Decs and Certificate of Land Ownership Awards (CLOAs) as collateral/loan documents to no avail. Lalo na sa probinsiya, di pa uso ang TCT.

Pero malamang di puwede sa banko, esp. UB's and KB's, depending on their acceptable collateral policy. Maraming auditors na by nature eh masungit, hehehe (internal auditors and BSP auditors).

[ab_initio]

^^ kasi there's this strict policy on unsecured loans e.it's the bank against the depositors. these banks might be placing the depositor's money at a higher risk. loans are based on the credit applicant's commitment to pay. commitment to pay is ascertained by collateral...

tax dec and other non torrens title are in the nature of a traditional collateral.

[Lucius]

Thanks guys. Any specific company na tumatanggap? How long is the processing? The lot is located in Bulacan

[ab_initio]

any rural banks in bulacan, Sir. they might treat your doc as traditional collateral. (i'L check when i have time ha?)