Results of the default of the consumers in mortgage contracts made through financial leasing

Mortgage system consists of the concluding Mortgage contracts and the release of mortgage deeds into the secondary market. Mortgage contracts are framed in Law No. 6502 Law On Protection Of The Consumer at Art.32 and further and there are two types of Mortgage contracts are allowed in general. These are Mortgage contracts through Mortgage loans and financial leasing. Secondary market consists of converting Mortage hypotects into deeds and submitting them to investors. The purpose of the secondary market is to create funds to finance institutions to provide new loans. Mortgage contracts embodied such contracts as Mortgage loan contracts, financial leasing contracts and refinancing of these contracts. The most obvious common feature of these contracts is that the consumer moves for the purpose of acquiring a house. Acquiring a house as the subject of the contracts distinguishes Mortgage loan contracts from consumer loan contracts. The financial leasing transaction included only investment goods in previous implementions. Therefore, there was almost consensus that the transaction could not be a consumer transaction. However, the legislator has shown his will that the financial leasing transactions with both Law No.6361 Law On Financial Leasing, Factoring and Financing Companies and Law No. 6502 Law On Protection Of The Consumer, could be the consumer transaction. In addition, in our law, the financial leasing transaction was accepted as a loan transaction with the Law No.5411 Law On Banking Law. Mortgage contracts made through financial leasing are contracts in which the consumer is required to pay the loan amount in exchange for the use of a house that the financial institution buys from the seller or already owns it. When the consumer who concluded a Mortgage contract made through financial leasing, has defaulted on paying the loan prices, the Mortgage institution has the right to terminate the contract. Upon termination of the contract, the Mortgage institution may sell the house which is the subject of the contract and receive the purchase price as the sale price arising under the contract. If the price remains as residual, it must be returned to the consumer. In addition, the consumer is solely liable for the lien of the Mortgage institution with the purchase price of the house. There is no liability for the loss exceeding the purchasing price. For this reason, Mortgage institution must act as a prudent merchant when selling the house.