Cut off supply!? The consequences are something you can't bear!
Mortgage disapproval refers to a situation in which the buyer is unable to pay the monthly mortgage payment on time, resulting in the house being repossessed by the bank or otherwise disposed of. There are several reasons for this phenomenon:
First, homebuyers are under too much financial pressure. Homebuyers often have to incur higher down payments and loan interest rates when buying a home, which makes monthly payments a heavy burden. Especially under the influence of adverse factors such as the economic downturn and rising unemployment, home buyers may not be able to withstand the pressure of monthly repayment, resulting in a supply cut.
Second, homebuyers themselves are financially unstable. Some homebuyers may not fully consider the stability of their financial situation and future development prospects when buying a home, or they may have unexpected expenses after the purchase, which may lead to the inability to pay monthly payments on time.
Finally, and perhaps most critically, the housing market is volatile. For example, the owner buys the property at 30,000 yuan per square meter, with an area of 100 square meters. Down payment of 900,000 yuan, 30-year loan monthly payment of about 11,100 yuan! Due to the impact of the epidemic and other factors, the current market price of the property is only 20,000 yuan, which means that the current market value of the property is only 2 million yuan. In addition to the down payment of 900,000 yuan, the total monthly payment for three years is close to 400,000 yuan, and he needs to continue to repay for 27 years, a total of about 3.5 million yuan! See? Because of this house, the owner has already lost equity! In addition, if the owner's income is unstable, he cannot pay the monthly payment on time, or the monthly payment has certain difficulties, so he is forced to cut off the payment.
Once the property is cut off, it will have unbearable consequences.
First, the home will be repossessed by the bank or otherwise disposed of, and the buyer may lose ownership of the home. The property will be auctioned, with a high probability that the auction value will be significantly lower than the market value
, generally 6 to 7 off! That is to say, the house will be sold at a low price, such as this house, which may only sell for 1.4 million! Then the bank loan is 3.5 million, minus this auction money, 350-140 = 210! You still need to repay the bank loan of 2.1 million yuan! This interruption of supply is equivalent to an additional debt of 600,000 yuan!
Second, homebuyers may be exposed to legal risks as a breach of contract may be considered illegal.
Finally, homebuyers' credit histories can also be severely compromised, which will adversely affect future lending and other credit activity.
Therefore, buyers should fully consider their own financial situation and future development prospects when buying a home, and choose a reliable financial institution and suitable loan options to ensure that they can pay their monthly payments on time. At the same time, the government and all sectors of society should also take effective measures to provide more support and assistance to home buyers, alleviate housing pressure, and improve people's quality of life.
