No, Article (11) prohibits clauses that allow the automatic transfer of property ownership to the mortgagee if the debtor fails to pay by a certain date. It also forbids agreements to sell the property without following legal procedures. While the o…
No, Article (11) prohibits clauses that allow the automatic transfer of property ownership to the mortgagee if the debtor fails to pay by a certain date. It also forbids agreements to sell the property without following legal procedures. While the overall mortgage remains valid, such specific provisions are null and void. This protection prevents "equity stripping" and ensures that properties are sold fairly through supervised channels like public auctions.
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