Mortgage default generally refers to the failure of property buyers to repay the bank on time after applying for a bank loan to buy a house. This situation is the default. If there is no repayment for half a year in a row, the bank has the right to sue the buyers and withdraw the house auction. House foreclosure refers to the fact that the buyer fails to repay on time for three or six months in a year after signing a personal housing mortgage loan contract with the bank, and the bank will regard it as foreclosure and issue a dunning notice. After that, the owners who still don't pay back, or the owners who can't negotiate with the bank to change the repayment plan, the bank will bring a lawsuit to the court, so that this kind of house becomes a foreclosed house.

What are the hazards of breach of contract?

1, affecting personal credit information.

Both overdue mortgage and default mortgage will have an impact on personal credit reporting, so you should be familiar with personal credit reporting. After all, when the bank handles the loan procedures, it will also check the personal credit information of the buyers and approve the loans according to the personal credit information records of the buyers. If the borrower defaults, it will be blacklisted by the credit information and fall into a disgusting cycle. After personal credit information is affected, it will be difficult for buyers to apply for loans from banks.

2. Penalty interest

Usually, after the buyers cut off the supply, the bank will continue to urge the buyers to repay. At this time, the repayment should not only pay the fixed amount of the previous mortgage, but also add penalty interest. Property buyers signed a loan contract when handling loans, and there are also provisions in the contract. Don't underestimate this cost. The penalty interest on overdue mortgage is very high. The longer the mortgage is delayed, the worse it will be for you. If you want to make up the loan in the future, the fine will be very high.

3. The property was auctioned.

Under normal circumstances, if the mortgage is closed, the economic situation of the buyers themselves will certainly not be too good, so the banks will basically not urge the buyers to repay. At this point, the buyer's house may face the end of the auction. Usually, if the bank can't take back the house, it may choose to take back your house. After the house is repossessed, banks will generally choose to auction at a low price to recover cash. In other words, if the property buyers default, the mortgage in the bank's house can be directly handled by the bank, and the auction price will be much lower than the market price.