Lawyers under the umbrella body of the Real Estate Lawyers Association of Nigeria (RELAN) recently gathered for the association's 2013 summit.
The day-long conference held in Lagos, had the theme, "Foreclosure Law and Processes in Relation to Mortgage Security in Nigeria" in which lawyers, developers and financial experts lamented the way foreclosure law weighed down real estate investment and the operations of the nation's mortgage system.
They argued that in order to improve home ownership among Nigerians, it would require the establishment of a robust mortgage system and the review of land tenor policy.
They pointed out that the process of foreclosure in Nigeria is cumbersome, attributing it as one of the obstacles to real estate investment.
Attorney General and Minister of Justice, Mr. Mohammed Bello Adoke, said the ease and clarity in the process of enforcing mortgages particularly the foreclosure process are significant catalyst for achieving the nation's housing targets, saying it is important that investors are able to take possession of their collateral and recover their loans as quickly as possible.
He said, "The current complicated procedures in our law courts and the unduly slow pace of proceedings cast a dim path on the chances of achieving growth in these areas. Several options have been canvassed such as specialized property courts and the demutualization of mortgages, to facilitate non-judicial foreclosure.
"In my view, there is also need to focus on manpower and technology deficits in land registries and cognate institutions to complement any reform in the legal framework."
Foreclosure is a specific legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.
Earlier, President of RELAN, Prof. Charles Udenze Ilegbune, SAN, pointed out that the present global challenges require a new understanding of growth and innovation in the nation's property law legislations and ways of securing and effectively recovering mortgaged property.
According to him, the continuous growth in the world's population and the global economy as well as the increasing demand for mortgages as a form of secured lending would continue to place a huge demand on real estate transaction.
