Question

Alec and Jose both have promissory notes secured by real estate. Alec is the holder of a mortgage deed where Jose holds a Deed of Trust. Due to the COVID economic aftermath, both loans defaulted. Explain the process of default in detail for these two unfortunate souls including all the players involved. Would the process/your decision change if the government provided significant Monetary Policy (Stimulus Phase IV)?

Answer 1

By keeping in view of the COVID-19 pandemic situation most of the central banks have relaxed the EMI payment for the depositors for a period of three months. The moratorium period has been imposed also for the NBFC'S, Loan Holders and as well as the small investors.

In the given case the default of the loans will not create issues upto the period of three months. Alec and Jose both can protect themselves from the default list at least for the period of three months.