The Lagos State government plans to reduce the housing and mortgage sector’s risk and unlock its potential for economic growth by incorporating the foreclosure law into its mortgage and property policies.
Mortgage and real estate law is designed to encourage real estate growth and regulate consumer credit for real estate sales in the state.
It is also designed to create a favorable environment for accessible and affordable mortgages so that people can purchase their home by paying a certain percentage of the cost of the unit and paying the rest over a period of years while living in the property.
The proposed Amending Law, when it comes into effect, will include sales by public auction, voluntary return of mortgage-backed property in lieu of foreclosure, and foreclosure on late payment of the mortgage.
The state has already given assurances to financial institutions, including banks, that their investments in mortgages will generate returns after the amendment to the state’s Mortgage and Real Estate Act.
Lagos State Governor’s Special Adviser on Housing Toke Benson-Awoyinka made this known in Ikoyi, Lagos, during a round table discussion on the incorporation of the foreclosure law into the state’s mortgage and property law.
She said the round table discussion was initiated not only to ensure the development of the real estate sector in the country, but also to ensure professionalism and global best practices.
Benson-Awoyinka stated that Governor Babajide Sanwo-Olu was keen to develop the sector through properly established regulations that would ensure that local and international investors are attracted and that the highest level of integrity is maintained in the real estate sector.
She said Governor Sanwo-Olu has consistently reaffirmed his commitment to providing affordable and decent housing to citizens in an effort to alleviate the prevailing housing deficit across the state.
Benson-Awoyinka said the state government has taken a multi-dimensional approach to reducing the housing deficit to the bare minimum despite the prevailing economic downturn.
Also at the event, the Attorney General and Commissioner for Justice, Mr Moyosore Onigbanjo, said that once the law is passed, problems with mortgages in the state will be a thing of the past.
Onigbanjo said that with the change in the law, the state is now providing legal certainty regarding mortgage property sales and foreclosure in order to give confidence to the mortgage holder who has spent their money that in the event of default, they will be able to Realize the pledged security without the unnecessary stress of litigation.
He urged local and international real estate investors as well as financial institutions to watch out for the passage of the law, safer, more predictable, more investor-friendly and would protect the weak.
“If the banks are sure they will get their mortgage investments back, there will be more mortgages, more houses bought, more houses built and at the end of the day it will be a win-win for Lagos citizens and the financial industry will be better off. “
He indicated that the meeting, which was attended by all real estate industry stakeholders, should consider the issue of foreclosure law for Lagos State to address the problems that arise with mortgages by financial institutions and banks that are complaining about them their safety with the law.
House Committee on Housing Chair Rasheed Makinde said the gathering is aimed at finding a robust way of doing business in the real estate sector in Lagos state, adding that the round table discussion is aimed at facilitating transactions between the Financial institutions and mortgages perform and mortgages seamlessly.
“This meeting also highlighted some of the benefits that the mortgage and the mortgage debtor can enjoy, including the issue of voluntary surrender. With this meeting, innovations were introduced into the law to equate it with what applies in the developed countries of the world. We want to strengthen our law so that it can stand the test of time, ”he said.
Nigeria Mortgage Refinancing Company (NMRC) general manager Mr. Kehinde Ogundimu stated that the legislative changes would create the legal environment / framework that would attract investors to the real estate sector.
He stressed the need for huge investments in real estate to make housing available and affordable, adding that the government cannot do this alone.
He said housing was a necessity, pointing out that no effort should be spared to ensure that it is available and affordable for citizens, be it through home ownership or rent.