//setting up a trust

As Foreign citizens owning residential property within the Zona Restringida must hold their title in trust by a Mexican bank or corporation. Collateral International borrowers do this by setting up a fideicomiso (trust). We require a Guarantee Trust on all of our loans, regardless of location, which is not offered by all trustee banks. It will be important that you talk with us before working with a trustee  bank.  When the Notario has finished preparing the trust documents, Collateral International, the Trust Bank, and the seller must review it to make sure everything is correct.  Next, we will schedule a date for the closing, and signing of the fideicomiso in Mexico. If you will not be able to be present in Mexico for the signing, that’s okay; please let us know several weeks in advance of closing and we can help you make arrangements to grant power of attorney to a representative in Mexico. 

After signing, the Escrow company will handle disbursement of the funds according to the funding agreement, and you will have your dream home in Mexico.

Total Closing Costs including: taxes, Notario fees, setting up the escrow, appraisal fees, origination fee, application, establishing the trust, obtaining the SRE Permit will cost around 7%-10% of the Sale’s Price depending on the taxes in the region where you are buying.