If the borrower meets the best conditions to obtain the repurchase of his mortgage. Inopportune situations may disrupt repayment of the loan. In our example, he is still bound by the mandatory repayment. Without waiting to be in a situation of notorious insolvency, the borrower in difficulty can take some steps to palliate the seizure of his good. The solution to study before the seizure and sale of its property including the property that is the guarantee of the mortgage.
Asking for the redemption of real estate loan is one of the solutions for difficult repayments. This consists in having the remaining capital paid by another bank and subsequently refunding it at a lower rate and modalities than those of the old contract. However, there are other alternatives to improve the situation of the borrower in case of difficulties repayment of the mortgage.
Real Estate Loan Redevelopment
Redevelopment of loan or loan renegotiation is another step. This one is aimed more at the bank holding the debt. The objective is to ask the lender to reduce the amount of the monthly payment. In return, the credit term will be extended and the creditor may eventually revise the interest rate.
Negotiation with your creditor requires trust. In other words, transparency concerns the actual situation and the possession of supporting documents to support its request. The request must be made by mail. An acknowledgment of receipt or proof of the sending of the letter can be requested in case of litigation or administrative procedures.
Request for payment period to the lender
As soon as a situation that could cause the problem of loan repayment appears. The borrower is strongly advised to expose his case with his bank. These situations, unfortunately, are numerous.
- Job Loss,
- increased expenses, accumulation of debts or decrease in income.
- death of spouse
- separation of spouses, increase of expenses, accumulation of debt or decrease in income.
Request from the borrower
The borrower can then request a postponement of the deadlines. This is to postpone the deadline for reimbursement. In other words the payment of the monthly payment will be delayed for three months, up to a year. As a result, the borrower could find better fortune. At worst, the debtor in over-indebtedness will go to the commission of over-indebtedness to expose his difficulty. Note that most real estate loan agreements have a suspension clause.
Request for a grace period from the court of the first instance
If the debtor is confronted with a life accident, divorce, dismissal or a serious situation such as an inability to work or a disability, he may apply to a magistrate to request a staggering of his debt or a postponement of payment period.
This approach is similar to that of the request for a payment deadline from the lender but this time, the postponement is made by court decision and has an enforceable force. In other words, the bank can not refuse the postponement of payment if it has exhausted its remedies. The deferral of payment obtained must not exceed two years. However, the judge may order a non-payment of additional interest. In the case where the borrower has sufficient income to withdraw less than the monthly payment due, the judge can ask for the refund with a reduced monthly payment rather than interrupting the repayment momentarily.
Recourse to mortgage insurance
The loan agreement is linked to the subscription of borrower insurance. It is nothing other than the insurance contained in the credit simulator with an average rate of 0.36% negotiable and which can be written at a facility other than that of the incumbent bank. ‘loan offer. The role of borrower insurance is to repay the outstanding capital if one of the following situations occurs: loss of employment, illness, disability, incapacity for work, death.
The debtor is therefore entitled to ask his insurer to pay all or part of his debt if one of the above-mentioned situations occurs to him. And this, to avoid a forced refund by the seizure of his property.
Filing of an over-indebtedness file
In the case where the borrower has taken out several loans and is no longer able to repay them, he can send a letter to the headquarters at his place of residence requesting the referral to an indebtedness. The role of this commission is to find an arrangement with the various creditors of the person suffering from over-indebtedness.
The acknowledgment of receipt of the request for referral of commission of overindebtedness is not worth acceptance. The acceptance of the file depends on the evaluation made by the commission and some conditions sine qua non.
The debtor must be good. It is not a good time if he has:
- takes out a loan knowing that he will not be able to repay it,
- borrowed to live beyond his means,
- makes a false statement when taking out loans. For example, he has made a false declaration of income, hidden debts existing to benefit from a good ability of refund fictitious,
- lied to the commission of over-indebtedness when filing the application stating that he is no longer able to repay his debts when his situation proves otherwise.
The debts concern personal and family needs:
- mortgage loan,
- Personal loan,
- unpaid rents,
- rental charges due.