Is it worthwhile to redeem the mortgage?
Foreclosure loan is the money that the seller wants to sell the house that has not paid off the loan and then repay the mortgage in advance. Generally, few banks will have foreclosure loan products, because during the handling period, if the risk control is not well grasped, it is easy to fall into a loan crisis. Mortgage loans can be divided into cash redemption and quota redemption. The differences between them are as follows:
1. The sources of redemption funds are different, because the amount of redemption funds mainly comes from banks. The cash redemption money comes from the guarantee company.
2. The processing efficiency of the two is different, because the foreclosure amount needs the approval of the guarantee company and the bank, so the processing speed is relatively slow. The cash payment of the building only needs the approval of the guarantee company, which is faster.
3. The guarantee methods are different, because the amount of foreclosure requires the guarantee company to guarantee the bank for the customer. When the building is redeemed in cash, the guarantee company does not need to bear the guarantee responsibility for the customer, but the customer needs to bear the counter-guarantee responsibility to the guarantee company.
4. The charging standards are different, because the foreclosure fee is generally 1- 1.5 cents. Generally speaking, there is no guarantee fee for cash redemption, but it is calculated at the daily interest rate of 0.06% to 0.08%.
Through the analysis of the above differences, it is concluded that the longer the foreclosure cycle, the more cost-effective the quota foreclosure, and conversely, the more cost-effective the cash foreclosure. Therefore, before you foreclose, you can first estimate the foreclosure cycle, and then choose the appropriate foreclosure method according to the length of the cycle.
What are the risks of seller's loan transaction?
1. If the seller still has other debts, then after the house is redeemed, other creditors are likely to sue the court and ask the court to seal up and freeze the house.
2. After the buyer redeems the house for the seller, the legal property right still belongs to the seller before the transfer. If the seller sells the house to others at this time, it is likely to cause the buyer to suffer losses.
3. If the seller finds that the property price has risen sharply recently after the foreclosure, the former is likely to postpone the transfer under various excuses, resell the house to a buyer with a higher bid, and return the money to the original intended buyer after receiving it.