Many people have applied for a mortgage, but due to some reasons, they sometimes forget to repay the mortgage, which will cause the mortgage to become overdue. Many friends think that if a mortgage is overdue once or twice, it may be due to a bad credit record. One or two bad records are not a big deal, so they do not pay enough attention to the issue of overdue mortgages. But in fact, you don’t know how serious the consequences of an overdue mortgage loan are! Let’s take a look at the consequences of overdue mortgage payments and how to resolve overdue mortgage payments.

1. The consequences of overdue mortgage repayment

1. Personal credit will be damaged, which will affect various loan applications in the future

Once a mortgage becomes overdue, the lending bank will You can see your overdue repayment records. If it is a relatively strict bank, even if you are only one day overdue, the bank will enter the overdue information into the central bank's credit reporting system. Once the overdue records are entered into the credit reporting system, it will have a serious impact on everyone's future applications for credit cards or loans. Even if you can get a loan, the loan amount will be much lower.

2. Corresponding penalty interest and late payment fees will be incurred

No matter what the reason is, as long as your mortgage is overdue, the bank will make a collection call to remind the borrower to repay. , and penalty interest will accrue as long as the repayment is overdue. Different lending banks have different penalty interest rates, which basically add 30% to 50% to the original loan interest rate.

Generally speaking, banks will give everyone 7 days to make up the balance. If all the funds that should be repaid can be made up within 7 days, then there will be no late payment fees. However, if it exceeds 7 days, the bank will charge penalty interest and late payment fees.

3. You may be sued by the bank and make you homeless

Banks will generally set default clauses in mortgage contracts. If you delay repayment 3 times in a row or 6 times in total, you will become homeless. The borrower is required to repay all loan principal and interest in one lump sum.

So if you fail to repay your mortgage loan for more than 3 months, the consequences will be serious. The bank will file a lawsuit in court in accordance with the loan contract and guarantee contract. The court will take measures such as property preservation, freeze the deposits in all bank accounts of the lender and guarantor, and seize the mortgaged and pledged properties.

After the court's decision is made, it will be enforced according to law (such as withholding deposits, auctioning collateral, etc.) to repay the bank's loan losses. Specifically, it includes: loan principal, loan interest, overdue interest and penalty interest, all resulting litigation costs, and related costs incurred when disposing of collateral (pledge) and realizing it, etc.

2. Methods to solve the overdue mortgage loan

1. Extend the loan period

If you cannot repay the mortgage loan on time according to the original repayment plan, you can apply to the bank to extend the loan period application. Banks also have regulations regarding the extension time: short-term loan extensions must not exceed the original loan term, medium-term loan extensions must not exceed half of the original loan term, and long-term loan extensions must not exceed three years at most.

2. Apply for a repayment extension

If the home buyer is unable to repay the mortgage on time due to changes, he or she can apply for a loan extension 30 days in advance from the lending bank. After the bank verifies that the loan is correct, it will be extended appropriately. mortgage term and lower monthly payments. At present, there are many bank mortgage loans that you can apply for. When the borrower is unable to repay, he can temporarily explain the situation to the bank and apply for a repayment extension. The length of the extension can be set by the borrower, but there is a maximum period limit, and extensions can usually only be applied for once or twice.

3. Seek help from relatives and friends

If you are really unable to repay the mortgage, you can seek help from relatives and friends to temporarily solve the problem and try not to cut off the mortgage payment. If there is a long-term cessation of supply, the house is likely to be auctioned.

Source: Internet