Mortgage real estate is a delicate operation that requires careful thought. It is an alternative in the event of failure during a request for repurchase of consumer credit. The real estate will be an insurance for the payment of his monthly payments by the individual.
Zoom on the purchase of mortgage loans
Mortgage Loan Repurchase is a banking transaction that consolidates all household financial commitments and consumer loans by including home loans. The peculiarity of this repurchase of credit resides in the acceptance of the customer to the mortgage of his property. This operation concerns people who are over-indebted and who are registered with the FCC, FICP or FNCI. It also affects people who have tried to buy a loan but have been refused by the banks. This is a long-term credit that can be up to 25 years for the repayment period while the amount to be borrowed varies depending on the value of the housing (ie 60 to 100% of this value). Apart from returning the property to mortgage, other conditions similar to other types of redemption are required. These include documents such as loan amortization schedules and pay slips.
The benefits of mortgage repurchase
This type of buyback is an opportunity for individuals to reduce their deadlines. In addition to the amount of the monthly payments, the annual rates of total workforce (APR) are also considerably reduced. This reduction is more advantageous compared to the rates of repurchase of conventional consumer credit. In addition, extending the repayment term is also a significant benefit. It is entirely possible to include the financing of a project in a mortgage repurchase agreement. In addition, the borrower has the right to request an adjustable rate that will allow him to renegotiate the repurchase agreement later. Finally, the mortgaged property may be sold at the end of the term if the owner so wishes.
The presence of a notary is mandatory when concluding the mortgage repurchase agreement. It is therefore necessary to provide for notary fees, in addition to the administrative fees for the loan buyback. The processing times may also be longer compared to a buyback of consumer credit. In case of non-compliance with deadlines, the bank may sell the mortgaged property for reimbursement.