Residential Property Mortgage Delinquency in Anambra State: A Case Study of Union Homes Savings and Loans Plc.

Abstract

Residential property development as well as other housing projects involves a huge sum of money which a developer may not be able to provide with his equity capital. Financial institutions help to provide capital to finance real property development and this is mainly through the granting of loans. But in practice it is seen that some people borrow from these institutions without repayment. So, this research work aims at finding out the causes of mortgage defaults, its effects on the socio-economic structure of the state as well as suggesting possible measures needed to curtail the incidence of mortgage delinquency in Anambra State. During the course of the research work, several methods will be adopted in the collection of data, which includes the distribution of questionnaires, use of oral interview, and visual observation as well as the secondary source. The data(s) so collected are to be presented using tables, and analyzed in percentages. The use of Chi-square test is adopted in Analysis testing. Conclusively, mortgage delinquency cannot be completely avoided but can be minimized through proper adherence to the recommendations that will be made by the researcher in which one of them is proper monitoring and supervision of the project by the staffs of the lending in institution to prevent wasteful expenditure or diversion of funds.