These are the options you have if you cannot pay the mortgage so as not to lose the house

2023-07-31 21:37:33

Mortgages keep going upafter the ninth rise in interest rates by the European Central Bank (ECB) the Spanish will see how Your mortgage payments go up again.. This extra expense, together with the rise in prices caused by inflation, means that more and more families find it difficult to make ends meet, and others find themselves in the problem of not being able to meet your mortgage payment.

One of the first solutions that they usually put on in these cases, is to tighten their belts and try to reduce expenses to the max. To do this, all expenses must be analyzed and dispensable ones eliminated, for which some saving techniques can be used, try to reduce consumption, or look for other ways of obtaining income.

In the event that after these options the time comes when we see that the quotas cannot be met, the best thing to do is act before the bank passes the receipt and we stay in red numbers. Since that negative balance will begin to accumulate interest, and over time and the accumulation of unpaid installments, you can end up foreclosure and lose your home.

What can I do if I can’t pay the mortgage?

From the specialized HelpMyCash portal, they explain a series of solutions that can help you deal with this situationso that you avoid accumulating pending mortgage payments with the bank and its possible consequences.

Negotiate with the bank

This would be the first step to try. The bank does not have to accept the proposals, but always It is convenient to try, since the entity is not interested in you stopping paying the installments. In this case you have several options:

Pedir drop in interest or move to a mixed rate.
Extend the term so that the installments are lower: In this case, you will end up paying more interest, but by doing it in a longer time, the amount of the installments will be lower and therefore easier to pay. apply a grace period: It can be total or partial, and during this time only interest will be paid. In the long run, you will still pay more for the mortgage. apply a moratorium: In the case of the moratorium, all payments, both capital and interest, are deferred for the duration, and at the end of that period, the installments will be paid again with the same conditions as they were.

Code of good practice

It’s about a package of measures to help families pay the mortgage loanas long as they meet the established requirements.

Sell ​​the house

It’s a much more drastic measure. If it is the habitual residence, it will be necessary to look for a new place to live. The problem with this is that if the home cannot be sold for an amount equal to or greater than what is left of the mortgage, the outstanding debt with the bank cannot be settled.

Settlement

I would be of the last options to considerif all the others fail, since equally it would mean losing your home. In this case, the home would be delivered to the entity in exchange for the debt being fully paid off. Few banks usually accept it unless they are covered by the Code of Good Practices.