This is one of the difficulties of credit institutions when implementing the Housing Law 2023 (effective from August 1, 2024) as stated at the conference "New regulations of the Land Law 2024, Housing Law 2023 and Real Estate Business Law 2023 impact on banking activities", organized by the Vietnam Banking Association, on November 29, in Ho Chi Minh City.

Ms. Nguyen Thi Phuong, Vice President of the Banking Law Club, Vietnam Banking Association, said that one of the problems when banks implement the Housing Law 2023 regarding collateral is that individual houses built with a construction permit but not yet updated on the land use right certificate (red book). Current regulations do not specifically state "existing houses" or "houses formed in the future". Therefore, banks are confused about whether or not they can accept mortgages and provide credit for purposes other than the four purposes: buying, building, repairing, and renovating the house itself.

Clause 8, Article 39 stipulates that within 50 days from the date of handover of the house to the buyer or from the date the lessee has fully paid the agreed amount, the application must be submitted to the competent state agency to request a certificate for the buyer or lessee of the house. Except in cases where the buyer or lessee voluntarily completes the procedures to request a certificate.

"In reality, the procedure for granting certificates to home buyers is often delayed, affecting the rights of home buyers and the bank accepting mortgages for houses without certificates (not completing mortgage registration procedures). So how to overcome this problem?", Ms. Phuong wondered.

Faced with these difficulties, banks recommend that ministries, branches, and local People's Committees promptly issue guiding documents to ensure consistency and smoothness in the implementation of administrative procedures on land, housing, and assets attached to land, and to ensure the rights of land users and related parties.

At the same time, digitizing the national land database, registering land security transactions online, procedures for granting certificates, registering changes, and updating also need to be digitized to minimize administrative procedures. It is recommended to publish on the centralized information channel of the Ministry of Natural Resources and Environment information on land and assets attached to land for banks to screen before accepting mortgages, or coordinate debt collection before the land plot (if mortgaged) is recovered by the state...

Regarding the handling of bad debts from real estate mortgaged assets, Mr. Do Giang Nam, Member of the Board of Members, Vietnam Credit Institutions Asset Management Company, said that in case of not receiving cooperation from borrowers in seizing assets, the only solution for the parties is to file a lawsuit. However, the measure of suing borrowers still has many difficulties and shortcomings in practice.

"The time to carry out legal proceedings is long. Normally, if the customer does not cooperate, a case will drag on for many years without being resolved by the court, greatly affecting the cost of preserving and keeping mortgaged assets, depreciation and many other costs," said Mr. Do Giang Nam.