What are the consequences of overdue mortgage?
1, personal credit information has a bad record.
If the mortgage is overdue, the lending bank will see the overdue information at the first time, whether you are a commercial loan or a provident fund loan. Even if it is overdue by one day, some strict banks will enter the overdue information into the central bank's credit information system, and your credit information system will have overdue records. It will be very troublesome for you to apply for a credit card or loan in the future. Even if it is approved, the loan amount will be much lower.
2. Penalty interest and overdue fine
No matter what causes the mortgage to be overdue, the bank will call you to repay it at the first time, and overdue repayment will also generate penalty interest. In general, the penalty interest of banks is 30%-50% higher than the original loan interest rate.
If the overdue mortgage is paid off within 7 days, the lending bank will not charge a late fee. However, after 7 days, the bank will charge a penalty interest and a late fee.
3, the court's property preservation measures
There are default clauses set by banks in general mortgage contracts. If there are three or more overdue records in a row, the bank will ask you to pay off all the principal and interest of the loan at one time. Once the mortgage is overdue for more than 3 months, the bank can bring a lawsuit to the court according to the relevant provisions of the mortgage contract and guarantee contract. The court will directly take property preservation measures, freeze deposits in all bank accounts of lenders and guarantors, and seal up other mortgaged properties.
Don't think that this is only a temporary seizure, and the court can only lose money. Finally, we should not only pay the principal and interest of the loan, default interest and overdue fine, but also bear the litigation costs and the expenses incurred in disposing the mortgaged property.
What if the mortgage is overdue?
1, short-term overdue treatment: after the mortgage is overdue, you should contact the loan bank as soon as possible to pay off the arrears. If there are clauses in the contract that will result in other liquidated damages and late payment, they should also be repaid as soon as possible. If you really can't repay the arrears, you should explain the reasons to the bank first, and then ask for an extension of the repayment period and then repay it as soon as possible. This is usually caused by personal negligence. Not all overdue personal credit reports will be displayed in time. Usually, the update of the credit information system will be delayed for several days, so what the loan needs to do in a short time is to make up the arrears and actively communicate with the bank.
2. Handling loans overdue for more than three months: The credit report has shown that what needs to be done is to pay off the default interest in addition to the arrears, and maintain a good repayment habit in the future loan period. After five years, bad credit records will be automatically eliminated. It is worth noting that most loans except mortgages only refer to the credit records within two years.
3. Other unexpected reasons for overdue treatment: If it is overdue due to unemployment, illness, going abroad and other reasons, you can go to the bank to issue a "non-malicious overdue certificate", and the bank will investigate the actual situation. As long as the reasons for overdue are verified, the bank will generally issue a certificate.