UAE: Banks in the emirates are aiming to restructure mortgages for defaulting homeowners instead of repossessing the properties.
According to lawyer Mazen Boustany, the head of banking and finance at legal firm Habib Al Mulla & Company in Dubai, this is because banks prefer to renegotiate payment terms and avoid booking provisions, with legal action seen as the last resort.
Mazen recently said that several of Habib’s conventional and Islamic banking clients have started filing cases against mortgagors of the foreclosed properties in a bid to recover losses.