Solutions to meet the mortgage payments in times of economic crisis.

When economic circumstances change so that you can not deal with the receipt of the mortgage , must take into account certain facts before taking the first step. The inability to meet mortgage bills puts many people in a real vital crossroads. Of course, everything depends on the personality and circumstances of each, but in most cases, it has been excited about a life plan, savings and hard work.


Preparing before you stop paying a mortgage

Before you get started (because, in this situation, you have to do is shake the fear and be prepared to act with determination), it is advisable to demonstrate the highest dose of cold blood available. To mention a good dose of positive intelligence (which is usually referred to as “being ready”), you’ll need nerves of steel, the calm of a yogi, the temper of a hero and the patience of a saint (all together now time). The first thing to know is to stop paying (anything, but more so a mortgage) is a bad option. Should be the last, when already have closed all the doors and there are no other exits. The banks are all powerful institutions and six months (the latest) the mortgaged property will be in all records of defaulters have or might have ( RAI and ASNEF are the most common) of which will be very hard to leave.

In addition to preventing access to any credit of any kind (up to fund a washing machine), many landlords already use them to check the financial solvency of the future tenant . In the worst case, when the house was lost, but not least, still be some amount to the bank, which will use all means at its disposal to seize salaries and future income.

What to do before you stop paying a mortgage?

The first: approaching the bank, explain the situation and possible solutions. This must be done before the first default occurs. That is, we must stand as a proactive and responsible person (but unlucky) you are. This is the first step and the mortgaged believe that the ball is now in the court of the bank. Not so. NO. The bank or savings take to answer exactly what it takes to fall into the first default. That is, there will be no hearing until the loan is not in “irregular situation”, according to banking jargon.

Having reached this point, surely freeze cards, return receipts, and approximately on day 15 when they call to ask you the payment. Here you must show a good temper and with the same passivity that are wondering, the answer that the matter rests with the director of the bank branch. It’s good that you can give the name and some data. Now is when the ball into the roof of the bank: when “your” problem is also “their” problem.

Solutions for a mortgage that can not be paid

Although the client wants to provide the most suitable proposal and defend it with nerves of steel (the third quality), surely the bank will impose some conditions that seem (and are) completely unfair. In exchange for a grace period (an idea) that never reach more than 24 months or extend the term (another idea) of the mortgage (up to 40 years, according to the entity) must sign the odd committee and Of course, a very upward modification of interest (Euribor plus 3 or 4 points).

If not, the problem is only of mortgaged and the bank will take the time until the customer is in a desperate situation and access to their requests. Each must assess and weigh their options, but you should know that, before a dramatic change in the financial solvency will be very difficult to change the mortgage to another bank and that, more or less in two years will have to leave the house if stops paying. The last thing to keep in mind is that, at any time, even a day before the home goes on auction, you can pay everything you owe. That together with the interest, fees, expenses and costs involved.