Property defaulters sued by Islamic mortgage providers

Fri, 04 Nov 2011
A number of Islamic mortgage providers in the United Arab Emirates have taken steps to recoup losses made through dealings with mortgagors and foreclosed properties.

Mazen Boustany, head of banking and finance at Habib Al Mulla and Company has told Emirates 24/7 that lenders are taking this action if those they are acting against are adjudged to have assets that can be attached.

Mr Boustany revealed some of his company's clients have filed against those unable to keep up their Islamic mortgage payments, but declined from giving a precise figure.

He said: "We are not aware of how many cases have been filed in Dubai . In the firm, we are dealing with a few cases for Islamic Financial Institutions."

Mr Boustany went on to point out that it is not permitted for even a shariah-compliant lender to acquire or repossess a mortgaged asset directly.

His comments come after chief executive of Sakana Holistic Housing Solutions in Bahrain R Lakshmanan recently suggested it will by Gulf Cooperation Council countries that push forward increasing uptake of Islamic mortgages in the future.
Salaam-u-Allaikum
Speak to us!
Speak to an Islamic mortgage specialist - free and easy.