The house is cut off and the mortgage cannot be paid.
When browsing videos and information, you will sometimes see that some owners have lost their house due to economic problems, unable to repay their mortgage, and even some houses are in a state of disrepair, and the invested funds cannot be recovered. Faced with the pressure to continue to repay the mortgage in the future, some people choose to let it go, believing that the house is not their fault and should not bear the responsibility for repayment.
This idea may be reasonable in the United States, where the house is used as collateral, and if the loan cannot be repaid, the house can be transferred directly to the bank, thus realizing the debt settlement. However, unlike in the U.S., China's real estate market often makes a down payment unrecoverable after a home is cut off. Penalty interest and liquidated damages incurred after the deadline will also be borne by the person who broke the supply. If the supply is cut off for 6 consecutive months, the bank will auction the house, and the auction fee will be borne by the person who broke the supply.
Breakers believe that the money from the auction of the house can fill the gap, but this is not the case. The starting price is 20% off the market appraisal price; The second sale price is a 5% to 20% reduction from the first sale price. The funds obtained are not enough to repay the loan, and it is necessary to reverse the bank.
At this time, how should the severed donor save himself?
First of all, do not give up, and actively apply to the bank to repay only interest, not principal.
Secondly, you can negotiate with the bank to extend the repayment period.
Finally, do not wait for the bank to auction the house, take the initiative to sell the house to reduce the financial loss and avoid greater losses than the bank auctioning the house.
We must move on with our lives, without choice. I hope this article is helpful to friends who are preparing to cut off supply.