What is a mortgage?

Mortgage non -payment is a situation where someone does not make payments on their mortgage, and the loan is considered "by default", which means that the agency that holds the note can decide to take over the property. Non -mortgage nonsense can lead to a loss of a piece of real estate and should be avoided at all costs. Although the property is not lost to the bank, the failure mortgage will transfer the credit score significantly, which makes it difficult to negotiate with the bank or secure the loan for other loans in the future. Many mortgages include a period of one to two weeks, which means that payments sent during the postponement period will still be considered in time. However, late fees will begin to collect after the postponement period. If it is more than 30 days after the due date, the mortgage is considered to be the default.

Once the bank finds that 30 days have passed, it may send a notification of the mortgage to the credit agency, which immediately affects the credit score. Within a few weeks, the bank usually retains the services of the Agency for Loan ine trying to get past payments of the owner of the house. This contributes to the fees associated with the mortgage. Many banks will also insist on full payment, including late and collection fees to bring the house owners and do not accept partial mortgage installments when the mortgage is by default.

Within 60 to 90 days of the decision that the mortgage has extended, the bank will send a notification of a mortgage for house owners. This is the first step in the market closure proceedings that the property owner gives a chance immediately and in full, or risk that the property has been taken over by the bank and is sold in the auction. The bank will also be obliged to publish a public announcement of the market closure and the property owner will have a chance to buy the property back during the auction of the market, if it can collect cash in cash.

Some people decide to leave the default value of mortgages and simply leave and decide that the negative impact on their credit score is better than to sink into the house. This is the most common in areas,Where the values ​​of assets have declined radically, so people with loans that are larger than their homes are worth it. Other people can try to sell their homes before the mortgages get to the default settings so that the slate can speed and start again.

For homeowners who think they can risk mortgage failure, it's best to talk to the creditor. Ignoring payments, telephone calls and legal announcements are not appropriate because the bank refuses to deal with the owners of real estate who were not proactive. The moment the owner of the property thinks that the mortgage is omitted, he or she should contact the creditor to negotiate. Many creditors are willing to offer longer delay or allow reduced payments due to financial difficulties to prevent mortgage, as the bank would rather not deal with the problems of the market auction. Paying history in time and responsibility for mortgage handling will responsibly increase the likelihood that the bank will cooperate.