What happens if you can no longer pay your mortgage?
The decision not to pay your mortgage can lead you to live difficult times. Are there any alternatives? What awaits you?
Whenever someone tells me that they have difficulty paying their debts, I am sorry. Yes, I find it very difficult to face such a moment and I try to put myself in his shoes. I try to understand how they got to that point to see what exits there are. There must be solutions. Of that I am always sure. An uncle taught me that to win in business you have to learn to add and subtract.
The first thing is to keep calm
Nothing makes things more difficult than anguish. The second, react on time. Let’s talk clearly. Do you remember what business you signed with the bank? A mortgage loan. That is, the bank has your property as a guarantee of debt. Legally And it will take legal action to recover your money. Before this happens, you could do something to save the business. Here are some actions you can take if you can no longer pay your mortgage.
Normally, people suspend the payment of their mortgage debt because they have decreased their income or increased their expenses. Sometimes both situations. Losing work, illness, bad business or family situation hinders the economy. You try to pay there, dodge an obligation, pay something to calm the mood of the collector, suspend some expenses. It struggles to continue, hoping that the situation improves. As well. Improves if corrective actions are taken quickly.
I confess. I would not wait long to inform the bank of the difficulty that is happening. I would try to refinance, restructure the debt. I would ask what implications it would have. Extending the term, lowering the monthly fee, may be a higher rate. But it can be a good option, at least until the income is higher.
Search other sources of income
I know miraculous cases. Surely you too. Families that ended their problems selling cakes, working on weekends or taking advantage of their talents at craft fairs. Yes, in bad weather, good face, a lot of attitude and more work. The goal is to continue paying debts, especially paying your mortgage. Each income adds up.
Cover one debt with another
This is a strategy that requires a lot of attention and care when handling it. Many people make this decision to end collection calls or bank pressure. If you get a loan with a lower rate than your mortgage loan, go ahead. Remember, to get a new one
Credit with favorable conditions of a financial institution, you must be up to date.
Search for a buyer of your property
Selling the property can be a good solution. The task is to get a buyer either to pay cash or who is interested in acquiring the debt with a bank. In both cases, the idea is to pay your mortgage, either with the payment in cash or with a subrogation, that is, that the bank repays the debt with the credit of the new owner. How much can you sell the property? Reach to pay the debt? Good news.
This can be a very worthy exit. Offer the bank to pay with the mortgaged asset. If this is the alternative you think is the best, go ahead. You may lose in this business, but you will save your good name. You will leave doors open for the future. Do the accounts. The ideal is that the value of the good pays the debt.
Stop paying your mortgage
Yes, I recognize it. Sometimes that is the decision. Remember It has uncomfortable consequences. You will be reported to the risk center and you will be there for years. The Superintendency will always keep this story in your financial profile. No commercial and financial establishment may lend or issue a credit card until you leave the delinquent list. It is annoying, prevents doing business, simple things like buying in installments in department stores becomes a problem. Yes. That’s why they call it financial death. The bank has the obligation to initiate legal actions. Will file a claim to enforce the warranty. Once you have the ruling in your favor, you will auction the good to recover your money.
In these years, I have learned that banks do not really want to reach this point. Your business is not auction. Your business is to lend, move money in credits. Your business is also not stopping paying. Take care of your expenses, remember that the mortgage loan is a living business that deserves your attention until the last installment and always monitors your financial profile. And if bad times arrive, do not delay in taking action. The faster, the less costs.