About Forlacol
Forlacol was founded in 1976 making it one of Panama’s oldest Insurance Broker Firms. The company was founded by Jaime Ford Boyd, former ambassador to the US and Spain, Zona Libre Entrepreneur, and current director of ASSA Insurance company. Forlacol means “Ford, Lara, Colon.”

The firm is currently managed by Ursula Kiener Ford who is the third generation in the company. Ursula’s background is in assisting people who wish to relocate and/or invest in Panama. She hosts events for Expats to integrate with Panamanian Society. Ursula sits on the Board of Directors of the Chamber of Commerce and is the Vice President of the Tourism Committee of the Panamanian Association of Business Executives. Her current duties under the government are as the Director of Investment for the Ministry of Commerce.

Services We Offer:
Mortgages
Relocation and Assistance to Investors
Health Insurance
Car Insurance and the ability to compare car insurance
Life Insurance
Title Insurance and Escrow
Yacht Insurance and all Other Types of Insurance for Individuals and Corporations

Contact information: Office +507-211-1466

Panama City.

- Casco Viejo – Galleria San Felipe, Calle 2da

- Obarrio District, Samuel Lewis St. Torre Generali, 10 Floor

Branches.

- Boquete, Chiriqui – Main St., Dona Andrea Building Suite #5

Ursula at forlacol@gmail.com (507) 6676-5151

Guniver at boqueteinsurance@gmail.com (507) 6781-9090

Insurance for Businesses
Every insurance program Forlacol Insurance Brokers designs is different. Experience has taught us that every company has its own challenges and its own opportunities. And of course every business has its risks. 

With our experience, our staff’s consent and support of cutting-edge technology infrastructure, we can assure you of excellent service in:

• Professional advice to identify and manage risks of your business.
• Design and development of programs and insurance contracts.
• Evaluation and recommendations of the insurance contracts that you have or require you and your company.
• Technical assistance in the administration and enforcement of contracts of insurance (in particular with regard to integral design, specialized coverage and claims).

Insurance for Individuals

Every single individual represents a unique situation, especially since requirements for foreigners vary than those for Panamanians. Our department is up to date with every insurance policy for every company which can legally operate in Panama, in order to give you the best coverage which meets your specific needs.

Our service includes:

• Providing you knowledgeable, friendly and timely service in English or Spanish.
• Analyzing your situation and presenting you with options.
• Simplifying the process as much as we can, by coordinating your appointments and giving you summaries of coverage.
• Claims assistance by our specialized claims department.

Disclaimer: www.panamamortgageinsurance.com and every other website of Forlacol Insurance Brokers are written by Ursula Kiener Ford and the contents of these pages are protected by copyright laws. If you wish to link to our page or to use one of our articles – please contact us prior to doing so.

The Panama Club is the pioneer mortgage brokering company in the Republic of Panama – created to make your life easier.

Do you feel frustrated when you call the bank and get a different person every time, who does not speak English, and has no idea how your mortgage is coming along?

If the answer is yes, you don’t have to worry anymore! We are here to help you with EVERYTHING. You will never have to talk to anybody at a bank – you just contact us for everything.

What do we do?

- We pre-approve you to see if you qualify to purchase your property of interest and to your full capacity – if you desire to make future investments.

- We shop around the market for the best rates available or for the best terms considering your profile. As mortgage brokers we are able to get you deals that as an individual you will not get with the banks for example lower terms or lower penalties if you pay your mortgage in a shorter period, etc.

- We help you obtain a power of attorney for the person who is constantly traveling, is still in the process of moving, or is simply not coming to Panama. We can do the whole process without you having to be physically present in Panama.

- We coordinate the whole procedure – work between you and the bank to get things done as fast as possible – and the closing.

Types of loans we offer:

- Residential

- Commercial

- Land

- Construction

- Reimbursement

- Refinancing

In order to conduct a pre-qualification, the client must send us by e-mail scanned:

- Pre-qualification form (filled and signed)
- Copy of your personal credit report
- Copy of last (2) years of personal tax declarations

Contact Info

info@thepanamaclub.com

+507-836-6542 / 43 (Panama)

1-(305)-503-9957 (USA)

REQUIREMENTS FOR MORTGAGE LOANS IN PANAMA

In the US and other countries banks require title insurance as a requirement to obtain a mortgage loan. Here for commercial or private loans, banks require a person to obtain fire and life insurance policies as a guarantee that if the person passes away the insurance company will reimburse the bank for the unpaid portion of the loan. The property you are buying is not sufficient collateral for banks in Panama.

You have the option of buying these insurance policies from the bank or getting them from a broker.

THE LAW

Article 36 of the Law 59 of 29 of July of 1996.

Clients of private and state banks, financial companies, fiduciaries, credit institutions, and automobile agencies, have the liberty to decide and designate their insurance companies and their insurance brokers (natural or juridical) in those transactions in which the purchase of an insurance is needed.

There are numerous advantages of obtaining life and fire policies from a broker!

THE BENEFIT OF HAVING AN INSURANCE BROKER

An insurance broker is an intermediary between the client and the insurance company and/or the bank. We believe in creating lasting relationships with our clients and in order to do so we have to provide our clients with the fastest service and the lowest premiums that satisfy their individual needs. After doing a need analysis, we give our clients a few options with different premiums for them to choose which one they find more suitable.

When it comes to bank mortgage or loans we do this on a daily basis, so we know the importance of being reliable and fast. We handle all the paperwork required by the insurance company and after the policy is emitted we take it to the bank, so it’s more convenient for our clients.

LOWER PREMIUMS

We offer term policies for mortgage loans. What this means is that unless you choose to get a permanent policy, we do policies specific for the time of the loan. You can bring us the quote on the policies the bank offers and we will always beat that price!

MORE OPTIONS

Wouldn’t it be nice if besides having your life covered, you could get financial benefits out of your life policy? Well now you can!

• Reimbursement of premiums at the end of the term

• Accumulation of values at a guaranteed and projected interest rate

Also:

• Coverage doubles because of accidental death

• Exoneration of premium payment and/or rent due to total disability

• Savings within your policy that you can withdraw at any time without the need to reimburse to the policy

• Coverage until age 99 for permanent policies

All these options must be added on to the initial policy, if not they do not apply.

LEVELED COVERAGE FOR THE WHOLE TERM

We do not sell decreasing coverage. The premium you pay stays the same for the whole term of your mortgage and so is the amount you are covered for. This is a way of protecting your loved ones, since you are guaranteeing that the reminiscent of the loan will be taken care for and your family will receive the rest of the insured sum.

YOU PAY PREMIUMS ACCORDING TO YOUR AGE

We believe that your policy should be calculated on your age risk, not of an average age risk. This guarantees lower premiums. The premium you are quoted at the time you are getting the mortgage will be the same throughout the rest of the term.

YOU CAN GET YOUR LAB AND/OR MEDICAL EXAMS INr YOUR COUNTRY OF RESIDENCY OR DONE IN YOUR HOTEL / RESIDENCE

We understand that your time is valuable

This is why we design everything to fit your commodity. Many of our clients prefer to do their exams in their own country since their stays in Panama are short. To do this we have arrange a network of labs and doctors in most countries of the world. All we need to do is know where you live permanently and we will send you to one of our providers. The costs of the lab and/or medical exams will be reimbursed using as a reference the cost for those exams in Panama.

If you have a longer visit it is preferable to do those exams here in Panama. Our lab specialist and/or doctor will come to you at no cost or you can go directly to the clinic and/or lab. Let us know to coordinate an appointment. The exams should not take more than a few minutes.

Commercial factor – as the dollar looses value, the price of products imported from Europe, Asia, and Latin America become more expensive. This has made the cost of living higher in Panama.

The marriage between Panama and the dollar is in crisis. The American currency has devaluated 78% in the past seven years and this has debilitated our purchasing power and has made the cost of living higher. However, there are very few Panamanian economists who believe that it is time to put an end to the dollarization in our economy. The majority of those asked believe that in this occasion there is another option: a competition of currencies.

“To maintain the characteristic status of a international financial and commercial center, instead of allowing the circulation of only one currency, we should allow the circulation of all those currencies whose value is reflected by governments who maintain healthy fiscal and monetary policies, such as the Euro, the British Pound, the Yen, and the Swiss Franc,” commented Jose Abbo (a Panamanian financial expert).

The country could take advantage of the existing banking structure to manage this cosmopolitan influx, business men and businesses would have the flexibility to negotiate in the currency of their convenience, and investors could place their funds in a greater variety of instruments.

“This would stimulate local saving and our attractiveness as a foreign investment destination, by eliminating our dependency. Furthermore, it would eliminate the fear caused by the devaluation of the dollar on investment returns, since investors would be free to place their funds in Panamanian institutions in the currency of their preference” he said.

*In Panama the dollar circulates since mid XIX century. Along with the dollar, the British Pound, The Colombian Peso, The French Franc, and a series of quasi currencies were emitted by the banks of these times. After the independence of Panama from Colombia, the Government signed the Taft Agreement with the United States and proclaimed the dollar as the official currency. This was in 1904.

Juan Carlos Cachanosky, chief economist for Goethals Consulting for Latin America and Aristides Hernandez, local president of Latin Consulting, agree with Abbo.

Everything seems to indicate that the dollar will continue to depreciate, at least for however long the United States’ economy continues having commercial and fiscal deficits so elevated, continue collecting debt at the rate they are going, and facing a regressive cycle.

More than 80% of international reserves in central banks were in dollars during the 70s. But in 2007 this changed to 68%, and the Euro, since being in currency in 2002, has become the currency with the most liking from international communities, states Miguel Ramos, investigator from the Institute of National Studies from the Universidad de Panama.

“Every time the Central Bank of the EU reduces the type of interest, the dollar is weakened. If you add this to the fiscal disequilibrium which that country faces, their recent initiative of fiscal sacrifice to incentivize consumption, and the cost of the war, we will have to wait a while to see the dollar return to being a strong currency” Hernandez stated – who is advocating for authorities to promote the circulation of the Euro and savings in this currency.

When consulted, the Minister of Economy and Finance (MEF) stated that there are no legal restrictions for the legal circulation of other currencies in Panama. But that saving and commerce based in other currencies will have to depend on the private sector players. “Banks and private sector could accommodate themselves to this.”

The Canal Authority, for their part, could accumulate different strong currencies changing in Euro, Pounds, Francs, and Yens.

John Wasik, financial planner and analyst from Bloomberg, recommends investors to diversify their portfolios to reduce dependency on the green bills.

“You can choose from various investment funds in foreign currency which are offered in stock markets and retain them. In the last two years there have been many funds with very good results,” he said. In the last 12 months, for example, the CurrencyShares euro Trust gained 22% and the Japanese Yen Trust gained 17%.

The Program of Help to the Consumer (PAC in Spanish) is currently in Congress waiting to be approved. Preferential rates are a subsidiary which the government gives in order to lower interest rates for primary residencies which are valued up to $62,500. Under the new law this amount will be raised to $80,000.

(Town Plaza in Penonome – Panama – you can find many preferential interest properties in the interior of the country)

The Government promises to subsidize 100% of the interest rates of mortgages up to $30,000. Both norms will be in effect until 2014.

“The current preferential rates expirer in May of 2009 and we decided to extend them for 5 more years” commented the Hector Alexander – spokesperson for the Ministry of Economy and Finances during a conference to the congressmen. This project will cost the government approximately $200.8 million in the next 6 years, starting with $10.3 million in 2009 and closing with $54.2 million in 2014.

The National Council of Hosing Promoters (CONVIVIENDA) evaluates positively the decision of the government.

82% of mortgages awarded in Panama pay preferential rates and this government help has favored 101,098 families since 1990 and 2006.

LA PRENSA NEWSPAPER ARTICLE – FRIDAY 22 OF FEBRAURY OF 2009

The number of foreigners obtaining mortgages in Panama is growing at a very fast rate. According to the Panamanian Chamber of Construction (CAPAC) 850 mortgage loans were given in the first semester of 2007 – which represents 32% more compared to the same period in 2006.

(Malibu Beach Resort – Panama)

Although mortgages cannot give a complete idea of foreigners purchasing real estate in Panama – since many prefer to pay cash – they are a good indicator of the impact of the construction boom.

“These 850 mortgages only represent 6.8% of the total amount given in this period, but if you compare it to the borrowing amount – $162.5 million – this represents 31.4% of the total amount of mortgages given” – according to Michael Fernandez who is the economic director of CAPAC.

Get Content Insurance for your beautiful new furniture from Downtown Living!

The experts do not see major incidences in the performance of the economy and the local credit

The mortgage markets of the EU and Panama are very different, and for that reason there is little risk of this situation becoming contagious.

Panama follows closely the crisis of the American credit market. Although, analysts agree that the direct hit would be minimal, the risk is latent because if this situation persisted it would affect the projections of growth of this economy and therefore the local one.

Bankers, brokers, economists, financial analysts and authorities in general are aware of each detail. The week culminated with the encouraging news: with the intention of to calm the restlessness of the markets, Friday, surprise, the Federal Reserve announced the reduction of the rate of discount from the 6.25% to the 5.75%, after the injections of liquidity done by the central bank in the last days.

The Fed recognized that the conditions of the financial markets have been deteriorated and the restriction of the access of credit and the greater uncertainty could prevent economic growth to continue.

This point is indeed what troubles to the local market, like what will happen to the interest rates. Although the change is made, it would have to fall and it would benefit the consumers of credit, but not to the depositors.

ANTECEDENTS

Each one of the consulted sources insisted on the importance of understanding the origin of the problems of the mortgage market in the United States, to know clearly the differences with Panama.

The main reason of the crisis is the granted mortgage loans in the days of economic bonanza to borrowers with low credit qualification, with low interest rates.

When interest rates were increased and the economic conditions changed, the borrowers had problems to pay their mortgages and the quality of these credits deteriorated.

THE SUPERINTENDENCE

As much the Superintendence of Banks as the Banking Association of Panama (ABP) recognizes that in all the markets the contagious risk exists, they assure that Panama is quite isolated of the variations that occur in capital markets, considering that there are no emitters in common that can affect or create big risks.

(Bala Beach Resort – Maria Chiquita, Colon, Panama)

ECONOMIC PERFORMANCE

Everyone is on the lookout to how much uncertainty this volatility can cause, to such degree that hits in an adverse way the global economic growth.

The Superintendence of Banks bets that this will not happen. “The global economy has much impulse so that a bearish takes place considering the situation of the mortgage market of the US.
In the merely real estate part major problems are not foreseen, although the analysts advise to the banks to pay close attention to the market value of the properties which they are extending mortgages, since the prices of these have raised vertiginously in the last two years.

MEASURES AND EFFECTS

.RATES: The financial markets are convinced that soon the Federal Reserve will have to reduce the interest rates to contribute to restrain the world-wide crisis of liquidity.

.CUTS: The Fed has made four emergency cuts 1994, when it adopted a policy to only move the interest rates in the eight encounters of their monetary panel which are programmed every year.

.LOCAL .MARKET: If the Federal Reserve lowers the interest rates, this measurement would benefit to the consumers and the local companies because the cost of the money would be lower.

Home Owner’s Multi Risk or Fire Insurance

Fire Insurance covers the structure of a property – roof, walls, and ceiling. Rates depend on the material used for construction (cement, mixture of cement/wood, or wood) and the location of the property (urban or rural areas). Fire protection covers you for catastrophic damage such as earthquake, hurricane/windstorm, lightning, explosion, falling objects/vehicle impact, smoke damage, and debris removal. Flood and landfall can be included in this policy.

Your maintenance fee does not include fire damage.

Fire insurance is required by banks in order to obtain a mortgage.

Home Owner’s Multi Risk – Content + Fire Insurance

Protects the content of a property to a certain percentage (25, 50, or 100%) for theft. This policy can also protect you from theft outside your home, breakage of mirrors/crystals, electronic equipment, and civil responsibility (including fire).

Claims are based on good faith here in Panama, but it is recommendable to keep the receipts in case of a claim. Claims are based on depreciated value of objects.

Renters can apply for Home Owner’s coverage.

Companies give a 5% discount if you pay the full premium.

To get more information on Home Owners or Multi Risk Insurance or to get a quote, contact our customer service department at forlacol@gmail.com or by phone (507) 6676 5151.

You don’t need to search anymore; FORLACOL has the right Title Insurance Company for you!

When you include the Title Insurance FORLACOL offers in your transaction, you pay for peace of mind. Since there was no Title Insurance industry in Panama before January 2006, there is currently no standard among law firms, as there is in the US, about what is all that needs to be research when a buyer requests a title search to identify a title as clear from on-record defects. But when dealing with us, we will instruct, evaluate and insure for you an extensive due diligence, that will show everything there is to know about a property. Including but not limited to all Public records not only from the Public Registry but from other public offices; plus other private documents we request from the seller.

All of this information is then organized into a legal opinion about the property, that added to all other documents and original certifications will form your comprehensive Title Report. Thus, a Title Report is the best way to make a really informed decision about a transaction. Having fulfilled this requirement, we will issue a Title Insurance Policy that will protect your investment against: fraud, criminal and civil issues, mistakes, and other off-records title defects.

Title Report (Search and Examination + Legal Opinion)

The procedure is simple we would only need to know the Finca # and the insured value to start with. It is priced at USD$750.00 plus expenses. An underwriting requirement is for the proposed insured to hire one of our networked law firms to write this Title Report. That is a Title Search with all the attached listed documents, organized into a legal opinion. The cost of this legal work is payable to the chosen network law firm.

You just need to provide us with any information you have about the property you are interested in, pay the Title Report fee, and you will receive a Title Insurance Commitment from us with our invoice for the premium. The Title Insurance Commitment will disclose any problems found on this Title Report, as requirements to be fixed in order to provide you with a title that is clear of any on-record defects. After requirements are met and premium is paid, we issue your Title Insurance Policy to cover you from any off-record defects that may arise in the future.

Insured Value

This can be either your purchase price or property market value, you decide which. The insured value for the policy could also include future improvements like new constructions. It is entirely your choice which amount to insure as limit of coverage against economic loss. That is whether or not to insure future improvements.

Escrow services

Any transaction presents the same challenge when it comes to deposits and closing payments. Getting a Bank account in Panama is a lengthy process, direct wire transfers or foreign bank checks are inconvenient for the parties. Our escrow services are an attractive financial risk mitigation tool. We will recommend a leading provider of escrow services which can customize to meet your needs, making arrangements quickly, accurately, and intelligently to ensure your transaction closes properly.

Rights of Possession (ROP’s)

If you are planning to purchase property under Rights of Possession, we first of all need to clarify that these are not the same as title land. There is no way to effectively clear an ROP from on-record defects. So after careful examination of Panama laws, Lawyers Title Insurance Corporation has decided not to reinsure ROP’s. Rights of Possession are not an insurable interest on a property. It is better for you not pay out any money to the seller, but on your best interest to enter into an escrow agreement instead of a regular Promise to Purchase when buying an ROP. This way you can sing on your deal without risking your funds. FORLACOL will then work with your seller and your selected network attorney on getting this ROP titled or granted in a government concession, proceed with payment and closing according to the escrow agreement terms, and insure your title or concession upon receipt of an acceptable Title Report.

Planning Your Next Visit

We will be happy to assist you on your next visit when scheduled. The best time to get Title Insurance is when entering into a Promise to Purchase, or any time before closing. Have you already made contact with these developers about the property you are considering? We have good relationship with most of them, so if you haven’t been in direct contact, we would be happy to make the arrangements. Since recording of your title, or closings, are a lengthier process they normally will not be completed on your visit if you are here just for under a month. We can gladly follow up on it on your behalf. However if you have already closed on a property we can still properly clear and insure its Title.

Additional Information

Will you be purchasing this property on your personal name or through a corporation/foundation? If you are able to, it is recommended you purchase real estate through a corporation or foundation. I’ll be happy to explain the additional benefits of doing so if you would like. Would you be getting a mortgage, if so have you selected a bank? We have very good relationship with banks providing mortgages to foreign buyers and would also be happy to make this arrangement for you.

Corporation/Foundation to own real estate

This is not for everyone but depends on future plans. If you think that for some reason you may want to resale the property, then the benefit will be that you would not have to transfer title and pay transfer taxes, but the property will stay under the corporation or foundation’s name. What you sell is the ownership of the corporation/foundation instead. In regards to you Title Insurance it will also remain with the property as the insured corporation/foundation will still own the property after you’ve sold. Other benefits include: no need for a last will or testament and a succession trial for property to pass on property to your heirs but corporate ownership transfer instead; your ownership of the entity and thus the property is completely anonymous and not subject to any information exchange treaty for tax purposes with any other country. Also foundations assets cannot be impounded or seized.

Complete cost of corporations are around USD$850.00, and Foundations all inclusive packages average USD$900.00. These are not sold by us, but by our network law firms. These costs will almost always be less than paying title transfer taxes if you or your heirs decide to sell the property in the future. Our network firms also have a Visa and Immigration Services Specialist.

Contact forlacol@gmail.com or Ursula (507) 6676-5151 for more information on how we can advise you regarding title insurance, escrow services, or title search.