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Azerbaijan simplifies confiscation process of mortgaged property

20 December 2010 11:39 (UTC +04:00)

Baku. Ali Ahmedov â€“ APA-Economics. Sometimes, the confiscation process of mortgaged property is prolonged deliberately, in Azerbaijan, Director of CBAâ€™s Legislation Department Rena Malikova told APA.

Note that, the rules of mortgaged property and its confiscation, in case of non repayment of the loan, will be amended, in Azerbaijan. The changes will be concerned to registration of property, direction of demand to this property and its sale.
According to R.Malikova, the aims of works were directed to acceleration of this process.

Note that, the confiscation process of mortgaged property takes some months, presently. Of this, 1 month is for notification of creditor. Two months are for lawsuit. After this, the decision is sent to officer of court for execution and the property is put up in specialized auction and sold. At least, the sale of property takes 2 months.

CBA official says that, other reason of prolonging of confiscation process is that several debtors delay the problem: â€œIf the debtor applies to court permanently, this problem can prolonged for some months. The debtors in world practice understand this process, better. Even, in Russia and Kazakhstan, the debtors entrust creditors with this problemâ€.

R. Malikova couldn’t say how much the period of confiscation of property will be shortened but she noted that, the prolonging of this process artfically, will be eliminated.

According to director of department, in case of direction of demand to property, some banks estimate the property lowest and the debtors can request a definite time from bank and sell property him/herself.