Brief introduction of foreclosure loan
Redemption is a common term in second-hand housing transactions, which refers to paying off the mortgage principal and interest of the seller's property, canceling the mortgage registration and renewing the real estate license; Redemption shall be deemed to be completed after the real estate license is redeemed and the mortgage registration is cancelled. The loan that the seller applies for foreclosure is called foreclosure loan, which objectively circumvents the restrictions of the regulatory authorities on remortgage.
How to apply for a mortgage?
At present, banks and some lending institutions have stopped issuing foreclosed loans. Now the process of applying for a foreclosure loan can refer to the following:
1. The seller applies for a loan in a professional and authoritative foreclosure business organization. 2. Professional and authoritative foreclosure business institutions will strictly review and confirm the authenticity of the transaction before recommending projects to the loan platform.
3. The platform will transfer the raised funds to the borrower, and the borrower will repay the bank and get back the real estate license.
4. The real estate license is transferred and the real estate transaction is reached.
The borrower will give priority to repay the loan after receiving the money.
Matters needing attention in applying for mortgage
1, the interest rate is relatively high, and the annualized mortgage interest rate is about 18%.
Besides the interest rate, there is a handling fee. Taking Beijing as an example, the monthly comprehensive fee for foreclosure loans in Beijing is 1.5%. If the loan term exceeds 30 days, the comprehensive fee of 0.5% will be charged for each day exceeding 10, and the amount less than 10 will be calculated as 10.
3. Limit the choice of mortgage loans. If you want to apply for a mortgage, you must also apply for a mortgage on this platform.
4. The risk of mortgage loan is that on the one hand, applying for mortgage loan with annualized interest rate as high as 18%, on the other hand, applying for mortgage loan with high amount and proportion, the liquidity risk is obviously increased, and the borrower may change the use of mortgage loan without authorization in the process.