Unfortunately, most people applying for a mortgage do not think about the fact that they can get sick, lose their jobs or get into some other difficult situations. As a rule, solvency problems do not arise due to global or domestic economic problems, but because borrowers are not able to correctly calculate their own forces. As a result, many of them, after a few years, begin to understand that there is nothing to pay a mortgage (mortgage loan). What to do in such cases, you will find out by reading this article.
What threatens loan defaults?
It is no secret to anyone that real estate purchased on credit remains pledged by a banking institution until the debt is fully paid. In case of non-receipt of obligatory monthly payments, the bank has the right to sell the property and collect the proceeds in payment of the debt.
Those who are interested in what to do if there is nothing to pay for the mortgage, must understand that their apartment can be sold at a very low price. Therefore, very often the proceeds from the sale of funds do not fully cover the loan. As a result, the borrower risks not only not having a roof over his head, but also with impressive debts to the bank. In addition, he also loses the amount that was paid on the loan earlier. Therefore, the first measures should be taken as soon as the borrower begins to understand that there is nothing to pay the mortgage.
What to do in order not to be left with nothing?
The worst thing a person can do when they find themselves in a similar situation is to refuse to pay debts. The first thing the bank does is to include the so-called penalties. This is fraught with the fact that debts will begin to grow at a catastrophic rate. After this, some institutions begin to psychologically affect the borrower. Telephone calls and letters reminding of possible ships are used. Those who are interested in what to do if there is nothing to pay on the loan, you need to be prepared for the fact that in the event of non-payments, the bank will initiate legal proceedings. And his final chord will be the sale of an apartment through an auction. Even if young children are registered in the mortgage housing, bank lawyers will find ways to recover their money. Therefore, in order not to be left without an apartment and with huge debts to the bank, you need to look for ways to solve this problem.
Option One: Restructuring
Recently, many borrowers have nothing to pay a mortgage to Sberbank. What to do in such a situation, a specialist who understands these issues will tell you for advice. One of the possible solutions to this problem may be debt restructuring. If a person has incorrectly calculated the credit load or simply lost his job, then sooner or later he will understand that he has nowhere to take money to make the next payment.
“If there is nothing to pay the mortgage, then what to do?” - many debtors are interested. In this case, you must contact the bank. As a rule, modern credit institutions are willing to make concessions and often offer to restructure debt. In other words, the borrower is offered to reduce the amount of the mandatory monthly payment by distributing it over a longer period. This option is beneficial not only to debtors, but also to banks that want to return their money. In order to receive a restructuring, it is necessary to submit a corresponding application to the banking office. If everything is in order, the debtor will be asked to draw up and sign a new loan repayment schedule. Under the schedule must be seals and signatures of authorized representatives of the institution.
Option Two: Insurance
Those who care about what to do if there is nothing to pay on the mortgage, it is worth remembering the existence of insurance. It is necessary to carefully read its contents. In most cases, insurance companies are willing to pay bank debt if the borrower has lost his ability to work due to some illness or injury, or if he unexpectedly lost his job.
To receive the payment you will have to collect the necessary documentation. Depending on the situation, insurers may require a medical certificate confirming the presence of health problems, or a notarized photocopy of the employee with a letter of resignation with the relevant order of the former employer. It should be understood that they are not liable if the insured person herself injured herself or received them while intoxicated.
Option Three: Finding a Compromise with the Bank
Those who do not know what to do if there is nothing to pay on the mortgage, you need to understand that bank employees have to face a similar problem almost daily. Therefore, the debtor must put aside his embarrassment and go to the bank in search of a compromise. It is possible that the financial institution will agree to grant a deferred payment or allow only the principal amount to be paid. The main thing is that the borrower has a good, respectful reason, which may be the birth of a baby, a sudden illness or difficult financial situation.
Option Four: Pending Court
If a person who does not know what to do, if there is nothing to pay on a mortgage, really serious financial difficulties, we can recommend to wait for the trial. This option is most beneficial to the non-payer, because no court will force him to pay fines and penalties, the amount of which significantly exceeds the size of the main debt. In addition, the debtor will have the opportunity to legally agree on an installment payment, and sometimes sign a world one.
In the presence of pledged property, the bank has the right to demand that the penalty be levied on him. If the debtor previously made payments, the principal amount will be given to the bank, and the borrower will receive the surplus. It should be understood that the bailiffs will be engaged in the sale of collateral property. As a rule, they sell it at a very low price.
Option Five: On-lending
Those who can’t decide what to do if there is nothing to pay on the mortgage, You can recommend trying to agree on a loan in another bank. This is especially convenient for those who are confident that in the near future he will receive a large amount, which can be transferred to pay off debt. Most credit cards have a grace period during which no interest is charged. In this case, you can save a lot. However, this option has several disadvantages. So, some banks charge a commission not only for issuing a card, but also for its servicing.
Option Six: A Careful Reading of the Loan Agreement
Bank employees are also people who can sometimes make mistakes. Therefore, we recommend that all borrowers who find themselves in a difficult situation, carefully read the contents of the contract. If the bank has resold the loan to the collection office, then it is necessary to check if the debtor agrees to the transfer of data to some third party. In case of his absence, the bank did not have the right to transfer information about the borrower to unauthorized persons. Therefore, by such actions he violates the law, which protects personal data, and the debtor can be released from obligations to a third party.
The second point to which special attention should be paid is whether the interest rate was not raised unilaterally. In addition, there are many other important nuances that can be noticed only by a qualified lawyer. Therefore, it is necessary to consult with a specialist.
Seventh option: renting out collateral real estate
Despite the fact that this method can significantly reduce the credit burden on the family budget, it is suitable for those debtors who have alternative housing.
You can also take advantage of this recommendation if a spacious apartment located in an elite area of the city was bought on credit. In this case, even those who do not have other housing can rent it out. You can simply rent a smaller apartment in a more remote area. And the difference can be transferred to the account of mandatory monthly mortgage payments. Of course, this method has several significant drawbacks. One of them can be considered psychological discomfort from the realization that completely strangers will live in your apartment. In addition, it is necessary to take into account the fact that housing may be empty for some time. After all, few people manage to rent an apartment for a long period. Do not forget that the rental price should be set in the currency in which the mortgage was taken. In this case, the borrower does not have to lose money due to the difference in rate.