Mortgage repayment is a lengthy process and can take more than 10 years. It is clear that during this period various force majeure situations may occur, as a result of which delays in payments are possible. And here it is very important not to lose interaction with the bank.
A mortgage is a fairly large responsibility, because this loan is usually issued for a long term (at least 10 years). Anything can happen in life, and sometimes quite decent borrowers are overdue on a loan. It is good if this is only temporary financial difficulties of no more than three months, after which the entire amount of the delay is extinguished. Undoubtedly, during this time, calls from bank employees and even letters will not give rest, and the amount of interest may turn out to be considerable. So it’s better to pay the loan payment and the penalty and sleep well.
But what if something serious really happened, like the loss of a high-paying job or other troubles, and you are unable to pay the bills? It will be very disappointing to lose the collateral, for which they have been paying regularly for years. Do not despair, because there are no hopeless situations!
Hide or confess?
The first good advice, which is suitable for absolutely any situation: do not hide from the lender. Many narrow-minded borrowers experiencing financial difficulties try to avoid communicating with bank employees, do not answer calls and do not respond to letters. This is fundamentally wrong, because in this way you can lose real estate acquired on credit quickly enough. If the case comes to court proceedings, the borrower's neglect of the bank may serve as an argument not in favor of the debtor.
It will be much smarter to cooperate with a financial institution and jointly look for ways out of this situation. In this case, you will have at least one trump card if you contact the bank with a statement describing the reason for the delay in payment of the loan. Thus, in court you will be able to prove that you met the financial organization halfway and did not refuse to pay.
Remember that it is not at all profitable for the creditor to take the collateral from you and to conduct legal proceedings. Moreover, the bank is interested in paying interest on the loan before the end of the contract.
Debt restructuring
There is such a thing in the financial sphere as debt restructuring. In simple words, it is a revision of the terms of the loan agreement regarding the procedure for repayment of the loan. Usually, in this case, the repayment schedule changes and it is even possible to defer payments for some time.
This is far from the only way out of the situation, so feel free to enter into dialogue with the bank and jointly overcome difficult times.
