RBI Eases Realty Exposure Norms For Lending TO Sezs
December 1st, 2009 by adminThe Reserve Bank of India (RBI) has made it easier for banks to lend to special economic zones (SEZ). Several types of advances to projects in these zones have now been excluded from the definition of commercial real estate loans.
In a circular in 2006, the RBI had classified SEZs as commercial real estate, making it difficult for companies involved in these projects to raise funds. Real estate loans are considered risky and categorised as part of exposure to sensitive sectors, which also include capital markets and commodities. There are also restrictions on foreign investment in real estate.
LB Singhal, director general, Export Promotion Council for EoUs and SEZs told ET: “We had taken up this issue with the ministries of finance and commerce. The matter was put before the empowered group of ministers headed by finance minister Pranab Mukherjee, which had decided that SEZs should be treated as infrastructure.” He added that with the RBI’s clarification, loans to those developing, operating and maintaining SEZs, as well as setting up or acquiring units in SEZs will be part of infrastructure lending. “This would enable domestic institutions and banks to make funds available to SEZs on the terms and conditions applicable for infrastructure lending,” he added.
In the circular issued on Wednesday, RBI has sought to define a commercial real estate loan as one where the funds are used to acquire real estate and the repayment of loans is out of proceeds of sale or rentals from the property. Bearing these conditions in mind, RBI has sought to differentiate between loans which could be classified as commercial real estate exposures (CREs) and those which were not. RBI said there are projects where there are arrangements to insulate the lease rentals from volatility in the real estate prices. This is done by inking long-term lease agreements that outlive the loan agreement and need not be treated as CREs.
Courtesy:- ET dt:- 10-09-2009
Respond To Those Foreclosure Letters Right Away To Keep Your home
October 9th, 2009 by Adam WhazzerYour House Has Been Auctioned And You Dont Know It
Stop Foreclosure. In todays tough economic times, more and more families are facing this intimidating, confusing and often scary prospect. Like any problem that threatens the well-being of ourselves or our families, foreclosure can cause a lot of different reactions in the people who face it. One of the all-too-common reactions of many families today is to simply ignore the warnings of foreclosure, destroying letters or hiding them from their spouse, hoping that something will turn up to prevent the process from going on.
Although this type of procrastination is a common human reaction to issues that are frightening and unfamiliar, buryingignoring a foreclosure letter or notice can be devastating. The foreclosure process is the first step in a series of actions that will eventually lead to the loss of your home. Ignoring the issue will not make it go away; in fact, by ignoring foreclosure in its earliest stages, you may be missing opportunities to slow the process, allowing you time to seek relief and find the answers that can help you stay in your home, or sell it yourself rather than have it sold out from under you.
Foreclosure is a complicated process, and one which can be overwhelming for an average homeowner to understand. The letter of intent to foreclose, which is often the first announcement of the foreclosure process, can strike panic into an homeowner. But the key is to remain calm, and to seek out professional advice immediately, while there are still options to consider that can keep you in your home.
Bankers are in the money business; they dont want to own homes. The foreclosure process is a long and time-consuming effort, and in the end, the mortgage company or other lending agency is left with a home which they now must sell. For this reason, most lenders are more than willing to work out term plans that can help you keep your property. But time is of the essence. By consulting with a professional early in the foreclosure process, you can often work out payment arrangements that will suit your budget, helping you to remain in your home and retain ownership.
By ignoring the early steps of the foreclosure process, you can lose many opportunities to refinance. In many cases, ignoring the foreclosure process has resulted in the auction of homes and eviction of the owners, who find themselves searching for a new place to live. In most cases, had these men and women consulted with experts in the early stages of foreclosure, they could have saved their homes. If youre facing foreclosure, you owe it to yourself and your financial future to seek professional advice at the earliest stages of the foreclosure process, to save your home and your financial future.
About the Author:
Adam Whazzer has been a mortgage guru for years” Adam has offered end foreclosure and foreclosure help to foreclosure victims for nearly 5 years. If you are facing foreclosure, stop by for More Info On this Subject
