What will be the impact of not being able to repay the mortgage?
1, resulting in economic losses: you need to pay a down payment to buy a house, ranging from hundreds of thousands to millions. If the buyer defaults, the down payment can't be recovered. In addition, buying a house also needs to pay commissions, taxes and even decoration fees. If the supply is cut off, these expenses can only be wasted. If the buyer has paid the mortgage for several months, the mortgage that has been paid before can not be recovered after the mortgage is cut off.
2. The bank has a penalty interest: if the buyer cannot repay the monthly payment on time, he must accept the penalty interest of the bank. The penalty interest for overdue mortgage is generally higher, and the longer the loan repayment time is delayed, the worse it will be for the borrower.
3. Personal credit information is damaged: in case of default, the bank's personal credit information system will leave a bad record. Defaulters will be blacklisted, and personal credit will be seriously damaged after it is defiled. I want to get a credit card, fly, take a high-speed train and so on in the future. , will be affected, it is basically impossible to get any loans from the bank, and even their own work will be implicated.
4. Low-price auction of the house: if the mortgage cannot be repaid for more than half a year, the bank will apply to the court for repossession of the house and auction it at a low price (generally, the auction price will be lower than the market price 10%-20% or more). If sued by the bank, the buyer will also bear the liability for breach of contract, repay all the loan principal, interest, penalty interest and compound interest, and bear the announcement fee, case acceptance fee, preservation fee, execution fee, legal fee, evaluation fee and auction fee. If the auction proceeds are not enough to repay the bank loan, the bank has the right to freeze the borrower's bank deposits or even confiscate personal property (such as other real estate or vehicles); The bank can also bring a lawsuit to the local court and order the borrower to compensate the bank for various losses through various channels until the defaulter pays off all debts.
What if the confession is about to be cut off?
1. Extend the repayment period. If the borrower can't repay the loan in a short time, he can apply to the bank for an extension of the repayment period within his tolerance, but this will mean that to re-sign the loan contract, it needs to be implemented in accordance with the newer policies of the state and the bank.
2. Apply to the bank for suspension of repayment of principal. The borrower can negotiate with the bank and ask for temporary repayment of interest, not the principal, and then repay the principal after the capital turnover.
3. borrow money from the bank again. Generally, in addition to the first loan, banks will also have two mortgage businesses. If the borrower is really unable to repay and has no funds for the time being, he can apply to the bank for a second loan.