On October 19, 2011 Kyiv hosted a conference «Mortgage 2011 - 2012. New Opportunities and Prospects» organized by Cbonds information agency together with the Ukrainian National Mortgage Association (UNMA). The conference targeted representatives of Ukrainian and foreign banks engaged in mortgage lending, mortgage banks and specialized organizations, mortgage brokers, real estate and construction companies, credit bureaus, collection agencies, realtors, insurance companies, law firms, as well as associations and foundations that support the development mortgage lending and construction.

Vasil Kisil & Partners Law Firm was represented by Senior Associate Natalia Dotsenko-Belous.

Discussing the current 2011 situation in the mortgage market conference attendees raised their arguments by comparing various features of the mortgage market abroad and in Ukraine. According to banking sector of representatives the in 2011 the lending decreased by ten times compared to the pre-crisis period. Although the number of banks that emerged in the mortgage market has increased (which is a positive trend), however, the requirements as to the borrowers and to the banks themselves remain very strict.

Among the key issues that hamper the growth of mortgage market development in Ukraine, representatives of the banking sector and the construction industry named the conflict of laws relating to the registration of rights to real estate, insurance, interaction between banks and developers, as well as the inability to apply certain provisions of laws, troubled debt and many other challenges.

The subject of the extrajudicial foreclosure of the property covered by Natalia Dotsenko-Belous in her presentation provoked a lively reaction from the audience. Mrs. Dotsenko-Belous spoke in detail about the features of the algorithm and the actions of creditors in foreclosure of the various types of properties that serve as the subject of mortgages. She also touched upon the key barriers in the foreclosure of the mortgaged property.

"Our practice shows that foreclosure of the property without a court order (but with elements of judicial proceedings) is in fact possible, if the object of security is a non-residential premise. In the case of mortgage of land and construction in progress the presence of a mortgage clause or an agreement on out of court resolution will not allow a mortgagee to do without a judicial foreclosure and the recognition of his property rights to them, " said Natalia Dotsenko-Belous.

Mrs. Dotsenko-Belous also covered the main risks associated with the successful passage of the non-judicial foreclosure procedures.