This site uses cookies. Some of these cookies are essential to the operation of the site, while others help to improve your experience by providing insights into how the site is being used. For more information, please see the ProZ.com privacy policy.
Cookie settings
  1. KudoZ™ Top
  2. Spanish to English
  3. Real Estate

Crédito Ejecutivo

English translation: provision for enforcement / foreclosure costs

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:Crédito Ejecutivo
English translation:provision for enforcement / foreclosure costs
Entered by: Charles Davis

17:35 May 21, 2019
Spanish to English translations [PRO]
Law/Patents - Real Estate / Puerto Rico
Spanish term or phrase: Crédito Ejecutivo
Seeking some information about what "crédito ejecutivo" might mean in the context of property registry entries from Puerto Rico from 1948-present. This appears to be an additional sum of money that is taken out along with the money for a mortgage on a property, but not clear what it is for and I cannot find any good translation options or parallel texts in English. I have many examples of this, but here is a pretty typical one:

"la parte deudora constituye hipoteca sobre esta finca en garantía de pagaré a favor de XXXXX, por la suma de XXX dólares, con intereses al cuatro por ciento anual [...] garantizandose además XXX dólares para intereses adicionales, igual suma para CRÉDITO EJECUTIVO, igual suma para remediar cualquier incumplimiento del duedor y otra suma igual para adelantos dentro del contrato."

Research seems to indicate that this could be some kind of sum used as a foreclosure loan or hard money that allows the property owner to stall foreclosure proceedings in order to restructure. (see possible information here https://thelawdictionary.org/article/is-a-hard-money-loan-an...

But its unclear why a foreclosure loan sum would be included in a mortgage... except if its just an option being made available IN CASE in the future the owner were to need it?? Anyone with mortgage knowledge, your assistance here is greatly appreciated! Thanks in advance
Mary McKee
United States
Local time: 18:07
provision for enforcement costs
Explanation:
I'm not a mortgage expert and there may be a better form of words, but this expresses the idea as I understand it. It seems to mean an extra element of the mortgage payments intended to provide a credit (crédito) available to the lender to cover the costs it incurs in the event of default, that is, the costs of enforcement (ejecución, hence ejecutivo). So the lender is assured in advance of being able to recoup its costs (including legal fees) in that eventuality.

I base this on the following two Puerto Rican documents:

"las cantidades estipuladas por las partes en el contrato de hipoteca en concepto de intereses (legales o moratorios), y las costas, gastos y honorarios de abogado (crédito ejecutivo) están exentos en el cómputo de la cuantía base para el pago de sellos de rentas internas."
https://www.ramajudicial.pr/junta/preguntas/sep06/DERECHONOT...

"[...] contrajo originalmente con un banco de la localidad un préstamo por la suma principal de $750,000.00, intereses al 6.625 anual y otros créditos hipotecarios para cubrir $75.000.00 de intereses en exceso de los garantizados hipotecariamente por ley, más otra suma igual en calidad de crédito ejecutivo para costas, gastos y honorarios de abogado en caso de reclamación judicial en cobro de lo prestado."
https://vlex.com.pr/vid/lexta20101029-04-u-s-685003873
Selected response from:

Charles Davis
Spain
Local time: 03:07
Grading comment
Thank you! Have decided to use this option
4 KudoZ points were awarded for this answer



Summary of answers provided
3 +2provision for enforcement costs
Charles Davis
3All-in advance for the legal costs of a possible foreclosure sale
Adrian MM.


Discussion entries: 3





  

Answers


29 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +2
provision for enforcement costs


Explanation:
I'm not a mortgage expert and there may be a better form of words, but this expresses the idea as I understand it. It seems to mean an extra element of the mortgage payments intended to provide a credit (crédito) available to the lender to cover the costs it incurs in the event of default, that is, the costs of enforcement (ejecución, hence ejecutivo). So the lender is assured in advance of being able to recoup its costs (including legal fees) in that eventuality.

I base this on the following two Puerto Rican documents:

"las cantidades estipuladas por las partes en el contrato de hipoteca en concepto de intereses (legales o moratorios), y las costas, gastos y honorarios de abogado (crédito ejecutivo) están exentos en el cómputo de la cuantía base para el pago de sellos de rentas internas."
https://www.ramajudicial.pr/junta/preguntas/sep06/DERECHONOT...

"[...] contrajo originalmente con un banco de la localidad un préstamo por la suma principal de $750,000.00, intereses al 6.625 anual y otros créditos hipotecarios para cubrir $75.000.00 de intereses en exceso de los garantizados hipotecariamente por ley, más otra suma igual en calidad de crédito ejecutivo para costas, gastos y honorarios de abogado en caso de reclamación judicial en cobro de lo prestado."
https://vlex.com.pr/vid/lexta20101029-04-u-s-685003873

Charles Davis
Spain
Local time: 03:07
Native speaker of: English
PRO pts in category: 100
Grading comment
Thank you! Have decided to use this option

Peer comments on this answer (and responses from the answerer)
agree  Adrian MM.: perhaps: an all-in advance for foreclosure expenses (& contesting the mortgagor's equity of redemption to stall a foreclosure sale)// ejecución hipotecaria = foreclosure. La acción hipotecaria in E&W euphemistically called a 'mortgage repossession action'
9 mins
  -> I was in two minds whether to express it as enforcement or foreclosure. I think you could justify either. Thanks, Adrian!
agree  Melisa Espeche
8 hrs
  -> Many thanks, Melisa :-)
Login to enter a peer comment (or grade)

1 day 5 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
All-in advance for the legal costs of a possible foreclosure sale


Explanation:
A combination of Charles D's and Helena Ch's shrewd ideas and to give a nominal choice.

Not sure about the US, but I am sure this - in E&W where I am not allowed for reasons of modesty to say I am a 'mortgage expert' - would be described as an 'advance' added or 'tacked on to and consolidated with' the mortgage loan and regd. as part of the same.

PS An English High Court judge once famously quipped in a case well-known to (long-suffering) English & Welsh land law students: 'No one by the light of day ever understood an English mortgage of land'.



Example sentence(s):
  • Fees and Costs. Defaulting homeowners usually are charged late fees on every missed mortgage payment right up until their home's foreclosure sale

    Reference: http://homeguides.sfgate.com/basic-foreclosure-fees-costs-61...
Adrian MM.
Austria
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 50
Login to enter a peer comment (or grade)



Login or register (free and only takes a few minutes) to participate in this question.

You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.

Return to KudoZ list

KudoZ™ translation help

The KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases.

See also:
ProZ.com term search
Search millions of term translations
Close search
Term search
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search