A mortgage is a long-term and large-scale obligation in terms of total payments. Loans of this type are often issued for 20-30 years, and not all borrowers manage to repay them early. And no one is insured against changes in their financial situation over such a long period. Therefore, experts recommend that borrowers take out not only “mandatory” insurance, but also protect themselves from other risks – deterioration of health, dismissal, and so on.
But what if the financial situation is close to critical, and the case cannot be recognized as an insurance case? What happens if you stop paying the mortgage? Let's consider different situations and the real consequences of stopping payments for the borrower.
Is it legal to not pay a mortgage?
It is only legal to stop paying off a mortgage in one case: an northeast mobile number database insured event has occurred and, according to the terms of the contract, the insurance company must pay the remaining debt for the borrower. There are no other options to not pay and keep the housing purchased with the bank's money. In this case, the onset of negative consequences is a matter of time.
It is in the borrower's interest to contact the bank as soon as possible. Perhaps, together with specialists, it will be possible to find a way out of the current situation. Including deferring payments. The easiest way to do this is if there is a valid reason - in most such cases, the bank is required to provide a deferment by law. But sometimes creditors simply meet clients halfway and do not initiate collection due to several missed payments.
Consequences of a Mortgage Lateness
The bank is obliged to act within the law. That is why you should not ignore calls from creditor representatives - it is more expedient to contact and try to find a way out of the current situation. In practice, banks are more willing to help clients who do not hide from them and try to solve the problem.
It is important to understand that courts and foreclosure on mortgaged housing are not a priority, but unnecessary expenses for the bank. Therefore, the creditor will try to settle the dispute out of court and come to an amicable agreement.