When it comes to buying a house, some people are worried about insufficient down payment, some are worried about high interest rates, some are worried that house prices will fall, and some are worried that after buying a house, the mortgage will be overdue due to unexpected circumstances such as job changes, which will lead to the risk of mortgage overdue. . What exactly is the risk of overdue mortgage loans, and how to solve the risk of overdue mortgage loans? The editor will now talk to you about the issues of overdue mortgage loans.
Loan overdue risk:
1. Impaired credit, difficulty in getting a loan
Loan is a lending relationship between home buyers and banks. Once a house is purchased, If a mortgage loan is overdue, the bank's repayment record will show the corresponding loan overdue record. On the bank's credit reporting system, the lender's breach of trust will be recorded. Later, the lender will want to apply for another loan or apply for a credit card. It becomes extremely difficult when situations like this require the use of personal credit.
We need to remind everyone that even if a person whose mortgage is overdue makes up the payment, the personal credit stain will still be recorded on the bank's credit system for up to five years.
2. Pay penalty interest and late fees
No matter what, money owed to others must be repaid eventually. Those who repay overdue will not only have to pay back the basic loan, but also Pay additional penalty interest and late fees due to an overdue mortgage.
As for the specific amount and proportion of penalty interest and late payment fees, each bank is slightly different. Basically, if the mortgage is repaid within 7 days, no late payment fees will be charged. If it exceeds 7 days, late payment fees and penalty interest will be levied together. It is about 30-50% added to the original mortgage interest rate.
3. Being sued by the bank, you still have to repay the remaining loan
When purchasing a house, a home buyer will sign a home loan contract with the bank. In the contract, the bank will generally stipulate that if the lender If you have overdue repayments three times in a row or six times in total, you will bear corresponding liability for breach of contract, including repaying all loan principal and interest in one go. If the remaining loan is not repaid for more than three months, the bank will file a lawsuit in court to force the lender to repay the principal and interest, as well as various resulting litigation costs and other additional expenses.
4. Life is affected and travel is restricted
When personal loans rise to the level of legal proceedings, the situation becomes very serious. Not only do you have to face repayment, Fines, risks of breach of trust, and your daily life may also be affected. For example, buying train tickets and air tickets may not be accepted, you may not be able to go abroad, etc., and you may even be blacklisted. In this era, without credit, it is really difficult to move forward.
Methods to resolve overdue mortgages:
1. Apply for a deferment of loan repayments
If you encounter a situation where you are temporarily unable to repay your mortgage, don’t be there by yourself You can bite the bullet without saying a word until it is overdue. You can apply to the bank in advance for an extension of loan repayment before the due date of the mortgage. After approval by the lending bank, you can get temporary relief. This way you can temporarily avoid the risk of mortgage overdue.
2. Transfer or sell the house
After getting approval from the bank for loan repayment extension, if you are still unable to complete the loan repayment within the relaxation period, you can consider selling the house at this time. . By transferring or selling the house to obtain loan repayment funds, the lender frees itself from the mortgage quagmire, and the new owner of the property can continue to perform the loan repayment business of the house.