What impact will mortgage default have on house slaves?
1, which affects credit reporting.
Breach of contract means that the borrower fails to repay the loan within the prescribed time limit, that is, the repayment is overdue, and the mortgage is the same. Once the lender fails to repay the loan in time, it is overdue.
If you don't repay for several months in a row, it will affect your personal credit record, and it will be more difficult to apply for a credit card in the future.
This house will be auctioned.
If the property owner defaults, the general bank will give the property owner a grace period of six months, but if the mortgage is not repaid for more than six months in a row, the bank will apply to the court for auction of the house, and the proceeds from the auction will be used to repay the bank's loan and the penalty interest.
3. The lender shall be liable for breach of contract.
Repeated or long-term non-repayment or non-timely repayment of bank loans has had a great impact on the interests and operations of banks. Under such adverse consequences, the lender shall bear certain liabilities for breach of contract, generally including not only repaying the principal and interest of the loan, but also paying the related expenses such as the lawsuit filed by the bank against the lender.
How to solve the problem after the mortgage of house slaves is cut off?
1, borrow money from relatives and friends
If it's just short-term cash flow difficulties and you can't repay on time, you can temporarily misappropriate some funds from relatives and friends first, and then return the money to them after the funds are in place.
2. Apply to the bank for temporary repayment of interest without repayment of principal.
Under normal circumstances, when there is a temporary inability to repay bank loans, property buyers can negotiate with banks and ask for temporary repayment of interest instead of repayment of principal. The premise is that you must prepare the relevant information of the loan, and then explain in detail the situation that the individual can't repay the loan at present, waiting for the approval of the bank.
Of course, if there are other assets in the family that can provide strong proof of assets, such as cars, it will be easier to get approval from the bank.
3. Adjust the loan term
In fact, this is the need for property buyers to ask banks to adjust the loan period. For example, if the repayment period you apply for is 20 years, and then your repayment ability is weakened, then you can ask the bank to increase the repayment time.
However, according to the general situation, whether shortening or extending the loan term, the bank can only be required to change 1 time.
To sum up, when buying a house with a loan, buyers should not think that they can sit back and relax after the loan is approved. Late mortgage repayment still needs strong economic backing as support. Otherwise, it will easily lead to the failure of buyers to repay their monthly payments on time, which will affect personal credit information. In serious cases, the house may be auctioned by the court.