Will be sued by the bank.

Pay late fees. If you continue to be late, you may be sued by the bank.

Article 207 of the Contract Law stipulates: "If the borrower fails to repay the loan within the agreed time limit, he shall pay overdue interest in accordance with the agreement or relevant national regulations."

Refers to the loan portion of the loan project that has not yet been repaid within the repayment period stipulated in the contract. From the overdue date, transfer it to the overdue loan account, and indicate the words "Overdue Loan" at the beginning of the loan account.

In order to urge loan units to repay overdue loans as soon as possible, 20% interest will be charged on the overdue portion. The national loan regulations stipulate that if the principal and interest cannot be repaid on time, the retained basic depreciation fund, enterprise fund or profit retention shall be used. Returns shall not include costs, taxes or profits.

Extended information

Consequences of overdue home loans

1. Bad personal credit record

Once a home loan is overdue, whether it is a commercial loan or For provident fund loans, the lending bank can see your overdue repayment record. 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 future applications for credit cards or loans, even if If you can get a loan, the loan amount will be reduced a lot.

2. Incurring penalty interest and late payment fees

If the mortgage loan is overdue, the bank will remind the borrower to repay via phone call or text message. Late repayment will incur penalty interest. Different loan banks have different penalty interest rates, and they basically charge an additional 30%-50% on the original loan interest rate.

The bank will give everyone 7 days to make up the outstanding 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. Risk of seizing mortgaged property

The bank will set a default clause in the mortgage contract. If the borrower is overdue for 3 consecutive or 6 cumulative times, the borrower will be required to repay all the mortgaged property at once. Loan principal and interest. If the home buyer fails to repay the mortgage loan for more than 3 months, the bank will file a lawsuit with the court in accordance with the provisions of 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 properties.

References Baidu Encyclopedia-Overdue Loans