Purchase of mortgage debt for Home loans

Frequently our users ask us for information regarding the purchase of mortgage debt for Home loans. In this article I proceed to clarify the most common doubts that arise in that case.

1.- Can I make a purchase of mortgage debt for Home loans?

1.- Can I make a purchase of mortgage debt for Home loans?

If you can, there is no impediment to make a debit purchase, if one exists, it would imply that you could not exercise one of your rights.

The laws and regulations in force establish that Peruvian citizens have the right to change their mortgages. And the purchase of mortgage debt implies just a mortgage swap, so not allowing this operation would be a violation of the aforementioned right.

2.- Do I lose the Home bond in the purchase of mortgage debt?

2.- Do I lose the Home bond in the purchase of mortgage debt?

That you lose or keep the bonus from the Home fund will depend on the conditions under which you received the credit.

If your credit was granted before October 2015, it contains a penalty clause, which implies the loss of the advance payment bonus. And as in the purchase of debt the prepayment of the original debt occurs, this implies that you will lose part of it if you go to this option.

For the loans granted since October 2015 there is no such penalty, so the loss of the respective bonus does not occur.

3.- Do I have to pay the notarial and registration expenses again?

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In principle if you have to pay it, unless the institution that buys the debt has some promotion that frees you from those expenses.

Some users ask us what is the reason why registration and notarial operations are required again. This is that in the purchase of debt, the mortgage changes to the name of another institution, so it is necessary to replace the original deeds.

4.- Should I reimburse rebate insurance?

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The answer is yes, you must cancel the aforementioned insurance again.

The reason for this is that the original mortgage insurance shows as beneficiary the financial institution that in principle granted you the loan. This forces to discard the previous insurance, and generate a new one where the institution that buys the debt appears as beneficiary.

How to reschedule debt?

Anyone who inherits is happy about perhaps unexpected asset growth. Discounts include not only assets, but also debts. As an heir, you are the legal successor of the testator and assume his rights and obligations. In other words, you take on not only the assets the testator leaves you, but also his financial obligations. Especially if a property belongs to the estate, you should be able to assess how you deal with estate liabilities. In the best case scenario, use the property to reschedule existing estate liabilities or even the property itself.

 

What to do if you inherit debt?

inherit debt?

If you have to be the heir to the testator’s debts, you can first try to sell assets from the estate and use the proceeds to pay off the debts. The sale may amount to a zero-sum game. They are rid of the assets, but they also have no liabilities.

If you have inherited a property, you have additional options. Of course, you can sell the house and use the proceeds from the sale to pay any land charges on the property. However, you may also want to keep the house and have concrete emotional reasons not to sell, especially if it is your parents’ house. A property has the advantage that it serves as collateral for loans and thus secured loans enable particularly favorable mortgage rates. If you consider that mortgage interest rates were around 10% in the 90s and have now dropped to a level of 1 to 2%, debt restructuring of debt with the help of a property is an obvious necessity. You should assess debt restructuring of debt under the keyword of mortgage lending.

 

What is it like when the property is financed?

What is it like when the property is financed?

If the testator has mortgaged the property with a mortgage to secure a loan, you must first process the existing loan agreement. The mere fact that the testator died as a borrower is not a reason that you, the heir, could terminate the loan. A right of termination only exists if the agreed debit interest rate expires or ten years have passed since the loan was paid out. If the testator has agreed on a variable interest rate, you can cancel without giving three months’ notice.

 

Compare a prepayment penalty with the interest savings

Compare a prepayment penalty with the interest savings

Regardless of this, you can negotiate with the bank about early termination of the loan, but you will then have to accept a prepayment penalty. The prepayment penalty is the compensation that the bank can charge if a loan is canceled early. The compensation is based on the fact that the bank can only lend the borrowed money under conditions that are worse than what was agreed in the terminated loan agreement. In view of the extremely low mortgage interest rates at the moment, it may be advantageous to accept any prepayment penalty and to conclude a new loan agreement with lower interest rates on mortgage terms. The interest you will save with the new loan agreement will make up for any prepayment penalty that may be required.

 

How do I reschedule debt?

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Now we get to the point. If you are lucky, the property is not yet fully charged or may not be charged at all because the testator has paid it off in full. In this case, you can charge the property with a land charge and use the loan to be secured to pay debts. Your advantage is that you drive mortgage rates far more cheaply than if you accept a consumer loan with significantly higher interest rates or overdraw your checking account. With mortgage financing (construction financing) you know exactly how high your monthly burden is and you can reliably plan your household budget.

 

Particularly advantageous: apartment building

apartment building

If you have inherited an apartment building, you now also receive the rental income as the heir. If you now reschedule your estate liabilities via a mortgage loan, you will benefit from low mortgage rates, the monthly charge of which is likely to be considerably lower than the rental income. So your rental income exceeds the principal. If you have rescheduled your debts or paid as fully as possible, you are on the absolutely safe side.

MORTGAGE DEBT CONSOLIDATION: IT IS NULL IF SIMULATED

The debt consolidation loan is aimed at extinguishing all debt positions by concentrating them in a single installment. Often the bank, following the revocation of credit lines or the forfeiture of the term of the loans, proposals or “forces” entrepreneurs in difficulty to take out a loan for the consolidation of debts.

 This mortgage is simulated in nature

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Since the real will of the credit institution is to acquire a mortgage guarantee for a pre-existing debt possibly deriving from the current account entrusted and therefore to transform an unsecured credit into a mortgage credit.

This mortgage is fraudulent to the law in that it achieves the objective of circumventing a hypothetical per condition creditor in the event of the bankruptcy of the company.

If the granting bank is already a creditor of the person to whom the loan is granted

If the granting bank is already a creditor of the person to whom the loan is granted

The sum granted as a loan is paid on current accounts entrusted, the debt is cleared; but after the disbursement of the mortgage, the debtor’s position vis-à-vis the lending bank remains unchanged but the original credit is provided with real and personal guarantees.

The loan for the consolidation of the debts in these cases is NULL, as there is only a formally credited, to settle the debts towards the granting bank.

 

“SIMULATED” DEBT MORTGAGE CONSOLIDATION: CHARACTERISTICS

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1. LACK OF TRADITIO

  1. – According to the Court of Cassation, a loan contract is a real contract that is perfected with the delivery of the thing (so-called tradition) from the grantor to the borrower who buys the property.
  2. – the entrepreneur will never have the availability of these sums as the bank pays the mortgage on the current account for the sole purpose of clearing a previous debt exposure (current account balance).
  3. – the purpose loan is void, and the nullity can be asserted by anyone who has an interest in it

2. CURRENT DEBT EXPOSURE AT THE DATE OF LOAN DELIVERY.

  1. The analysis of the current account often shows the illegitimate application of usurious interests, anatocism, ultralegality, overdraft fees, and undue expenses.

3. ACQUISITION BY THE BANK OF AN UNLAWFUL CASE OF PRE-ACTION.

  1. the stipulation of a mortgage loan to transform an unsecured credit (current account entrusted without guarantees) into a mortgage credit is in fraudulent law.
  2. in bankruptcy, this case integrates the offense of competition with preferential bankruptcy since, the bank’s will to damage other creditors is evident, knowing the entrepreneur’s state of insolvency.
  3. Creditors having been defrauded by this trick to create the privilege can propose revocatory action

Credit for civil servants without credit check

Officials have a different status in the financial world than normal salary borrowers. The very fact that they are almost non-cancellable is enough to grant a loan to civil servants without credit rating.

Especially at house banks, where you know the customer, it is no exception that this loan is granted. Only life-long civil servants who can prove their civil servant status receive this credit. However, the bank must be specifically asked about this loan, because the bank often does not offer it without being asked.

Conditions of the bank

Conditions of the bank

The special loan for civil servants without credit rating grants conditions that are very good. The official can often choose a very long term, often up to 120 months. In addition, the loan amount chosen is very high and can be as high as USD 100,000. With the long term, there are low monthly installments that have to be paid. In this way, a house can also be bought or built comfortably without having to pay a lot of money.

With this loan, the bank often requires life insurance to be taken out. This serves not only as security for the bank, but also for the borrower. If, due to an accident or illness, they are no longer able to repay the loan, the insurance will cover the remaining amount. The special thing is that life insurance runs as long as the loan. The borrower only has to pay the monthly insurance premiums. At the end of the term, the loan is repaid with the insurance premiums paid.

Credit abroad possible?

Credit abroad possible?

Not every civil servant wants to burden his credit rating and wants to take out a loan for civil servants without credit rating abroad. The same conditions apply here for the borrower. The loan is not recorded in the credit rating, so that another loan can be taken out in the future without any problems.

The salary and the secure job are enough for the banks as security, so that there will be no problems with the application. This loan for civil servants without credit rating can either be taken out locally or through a credit broker.

Learn How to Negotiate Debts: Tips for Getting Out of the Red

Are your bills making you sleepy? It’s time to solve them. With conversation and new deals, you can make your financial life healthy and stable. Understand how to negotiate debt!

When you have a debt, trying to repay it is a priority. Leaving a debt open can lead to several legal problems. CPF blocking, increased interest and even seizure of the debtor’s assets are some examples. But if your debt is already high and you know you can’t pay it back, there is an alternative! Anyone is subject to this situation, after all, unforeseen happen.

Because we will help you see options to get out of this.

debt

Financial institutions offer an alternative: negotiate debt. Trying to come to terms with your lender is a way to pay back what you owe and have a more stable financial life. Here are some tips for successfully negotiating debts and getting your finances ready!

First: patience

Your accounts were not made overnight, and to negotiate debts and settle them will not happen either. Before making any decisions, it is important to put together a financial spreadsheet. It is essential to know exactly what your income is, your expenses and especially what your debts are.

By putting the values ​​on paper, you will have a more accurate dimension of how much you owe and what options to get out of this situation. After that, it is important to set your priorities. Some possible parameters to determine the urgency of each are:

  • Which debts are older;
  • Which debts are higher;
  • Which debts have the most expensive rates.

An important tip is to choose to pay off the last first. This is because interest may increasingly increase the amount you owe.

As you tidy up your spreadsheet, considering cost savings is essential. Realistically, see what can be cut from your personal and / or family budget. This is not an easy thing to do, but it is important to understand that during this period, wiping out accounts is a necessity. Talk to your family, re-establish priorities and cuts that can be made. It’s time to work together.

How to negotiate debts?

debt

Negotiating debts involves asking the lender for a new form of debt payment. It is to show that under the conditions previously agreed, you will not be able to pay what you owe, but you will not stop paying. It’s just a readjustment in the contract.

Therefore, you need to show that you can afford the new format. Looking at your budget, make sure that the new proposal will not commit more than 30% of your monthly income. Otherwise, you may end up getting into another debt.

Before negotiating debt, create an action plan

Find out exactly how much you will be able to pay under this new agreement, what its terms are, how the interest rate adjustment will work, and what the new payment deadline will be. This proposal may or may not be accepted by the financial institution, and this is where the negotiation part will begin.

A good tip is that this process is all done personally. It is also possible to do online trading, however, it is difficult to be able to change the conditions set out in the text. When you talk directly to a person, you open spaces to ask for discounts, bargain and reach a deal that is good for both parties.

Always be friendly but assertive, and show that you have awareness and autonomy in what you are doing.

You know your finances and you know what is beneficial to you.

If you realize that your debt is much larger than what you earn, you are a super debt. This is the reality of 15% of the Brazilian population, and calls for the same measures that we describe but more aggressively. In this case you can also seek PROCON expert help.

Loan: is it worth it?

In the latter case, this may be an alternative. Focusing on swapping your debts, it may be worthwhile to apply for a loan that has lower interest rates than your previous debt and pay off at once. This will give you more control over the payment to the lender and you will not be surprised by an absurd increase in value thanks to fees, for example.

If you want to know the best alternatives, search here on our site. Our partners have great options with interest from 0.99% per month, depending on the type chosen. It’s easy, fast and totally online. Do not waste time and quite soon your debts to have a lighter and healthier financial life!

Obtain a real estate loan with a seasonal employment contract

Whether your situation stems from an obligation or is the result of a choice of life, working as a seasonal worker may pose a problem the day you borrow to buy your home. Our advice to help you carry out your real estate project.

Some town halls and urban communities offer additional assistance to the zero-rate loan. This aid can take the form of a subsidy, a discount on the sale price per square meter of new housing or an interest-free loan. Ask the housing services of the municipality where you buy the property. 

The nature of the employment contract

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The status of seasonal workers is widely spread in the sectors of agriculture (harvesting, picking, harvesting …), tourism or catering and banks know its particularities. To obtain a mortgage, you must have signed a work contract ( one seasonal worker in 8 does not sign a contract ) and show a sufficient history of activity over the past years.

The importance of the duration of the CDD

The duration of the CDD (generally from 2 to 6 months depending on the type of seasonal tasks) is also of great importance since it determines the amount of your annual income.
Good to know: if you have held a job in a hotel or in a coffee shop during the whole opening period for several years in succession, your contract may be like a permanent contract. Ask your employer or the local labor inspectorate.

The renewal clause

A renewal clause may be inserted in the contract when the tasks are to be repeated each season in the same period. Although constituting a simple priority made to the seasonal worker, the inclusion of this clause brings a little stability to your professional situation and constitutes a plus in your file.

Elements of risk analysis

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Know that the bank is carrying out a global study of your situation and each element is scrutinized by the risk analysis services. To put the most chances on your side, you must make sure that your record has the most positive points.

Personal contribution

The tightening of the conditions of access to real estate credit from network banks and the end of the financing activity of “Crédit Immobilier de France” (CIF) make today It is more difficult for candidates who have no capital to acquire the property. Fortunately, some subsidized loans are included in the calculation of personal contribution.

In general, banks require that you finance at least 10% of the purchase price plus notary fees and guarantee fees. For example, if you buy an apartment for $ 150,000, you must contribute $ 15,000 as a contribution and finance the ancillary costs of approximately $ 13,000, for a total of $ 28,000.
Important: the PTZ cannot be used to finance notary fees.

Keeping bank accounts

You have to prove to your bank that you are a good manager. This will analyze your bank statements for the past 3 months. If your accounts show significant overruns or worse still, payment incidents, you will not score points.

The regularity of activities in recent years

One of the essential aspects of the risk analysis is the regularity of the different contracts signed by the seasonal worker over several years. If, for example, you have worked regularly during the previous 5 years and moreover, with the same employer, the bank will certainly take this into account.

You complete with another activity

If you combine several salaried jobs or if you also work as a self-employed entrepreneur, the bank will calculate your average income on the basis of all the remuneration received in previous years (between 3 and 5 years depending on the lender). Again, the regularity of activities is of paramount importance.

The professional situation of the co-borrower

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Your spouse’s professional situation can work in your favor if the latter has a permanent contract. Indeed, if the co-borrower’s income is stable, the risk linked to your seasonal worker contract will weigh less heavily in the balance.

In conclusion: it is possible to obtain a mortgage, even without a stable income. Your file must nevertheless contain positive points: contribution, sufficient activity history, low debt ratio. Articles that should interest you

  • The important elements of negotiating a home loan
  • State aid to help young people become homeowners
  • Real estate purchase by a couple with one of the spouses on a fixed-term contract
  • How to borrow when you don’t have a permanent contract

Have you received a debt collection claim?

Unpaid bills and subsequent collection claims are not pleasant – neither to the debtor nor to the debtor. Here you can read some advice on how to act if you have received one collection claim.

Debt collection is both un nice and expensive. If you have a debt collection claim, you must pay the debt collection fee in addition to the original claim. A debt collection fee is a type of compensation you must pay to cover the costs the creditor or collection agency has incurred at the time of recovery. Of course, the best thing you can do once you receive a debt collection is to pay as quickly as possible.

 

Words and expressions related to debt collection

Words and expressions related to debt collection

If you are unable to pay, it is always advisable to contact the debt collection agency. In many cases, repayment agreements can be made that will prevent the collection agency from proceeding with, for example, legal steps on your claim. It is always seen as positive that you make contact and show that you want to make up for yourself.

If you have received a debt collection claim, you will most likely come across words and phrases you have not heard before. Below is a list of words and phrases that may be helpful to know:

 

Payment Encouragement

 

When a claim has been received for collection and the payment deadline has expired at least 14 days, you will be sent a written payment request to either pay or object to the claim within a period of at least 14 days. If you have not submitted your objections to the claim at an earlier date, this deadline will be initiated before legal recovery of the claim.

 

Legal recovery

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If you have failed to pay the claim within the time limit of at least 14 days set in the payment request and your claim is not disputed, legal recovery will be initiated. The debt collection agency or creditor must initiate a legal action within six months of sending the payment request, otherwise a new payment request must be sent to you.

 

Payment remarks

 

If you do not pay your debt, one of the biggest consequences of this will be that you receive payment notes. The payment notes are registered with credit reporting agencies, and for example, banks do not in most cases want to lend you if you have payment notes.

A payment note should be deleted immediately after you settle for it. As a rule, a note should be deleted after four years.

 

Good debt collection

Good debt collection

 

The creditor or collection agency must act in accordance with good collection practice. That is, they must not use methods that expose you to unreasonable pressure, harm or inconvenience.

 

Avoid debt collection

 

Of course, the best thing is to avoid debt collection in its entirety. If you have many expensive small loans and credit cards, you may want to apply for a refinance. With a refinance, you can pool all your small loans and credit cards into one, larger, loan. This way you can achieve a lower monthly amount, lower interest rates and you only get a loan to deal with – which makes the situation much clearer.

 

Planning is the key

debt payment

 

If you have a strained economy, plan ahead. Get an overview of what bills are coming when, and create an overview of other expenses. Then set up a budget that you can live with, where you prioritize the important things like loans, electricity etc. Read this blog post and get 8 savings tips for a more transparent personal finance.

Remember that it is important to pay your bills on time, when a claim for debt collection becomes immediately much more expensive. If you do not have the opportunity to pay – contact as early as possible and have a dialogue with the creditor / debt collection agency. It always helps to be open about the situation and set a repayment plan.

Loans for unemployed young people

 

For lenders, young people are a very special category, in that in most cases they do not have a sufficient credit history to be able to guarantee obtaining a large sum of money.

Other cases that may limit obtaining funding for younger people are cases where they have a fixed-term job or are out of work. We deal with the first case in this article, we talk about the second case now, so read on.

Loans for Jobless Youth: limits and opportunities

Loans for unemployed young people are solutions that can be requested from banks or financial companies provided that there are additional guarantees that cover the risks for the institution that grants the loan.

But, we ask ourselves, how likely is it to be able to obtain loans among unemployed young people? What are the chances of being able to find a job for anyone under 25/35 years old and without a job?

Loans for unemployed young people: what are the limits for funding for unemployed young people?

Loans for unemployed young people: what are the limits for funding for unemployed young people?

The fundamental condition for obtaining loans for young people, even if unemployed, is precisely the provision of adequate guarantees, which are requested by the bank or credit institution to cover risks.

Loans for young people are usually referred to as long as the applicant is around 35 – 40 years old.

The difference compared to other financing solutions could often be the interest rate applied to the loan, sometimes more advantageous than traditional personal loans.

A concrete example of this are mortgages for the first home, solutions with which everyone and especially young people can buy their first home. Often, in fact, these loans to buy a house have more advantageous interest rates compared to classic mortgages, used to buy properties beyond the main residence house.

What alternatives are there?

It is really difficult for a young jobless person to find a loan that is really convenient.

So what alternatives can there be? What advice can you follow?

  • Choose small loans. The lower the amount required, the easier it is to get credit. So, being able to limit your request to only USD 1,000, for example, could increase your chances of success.
  • Choose lenders where you are “known”: if, for example, you already have a bank account, or if your parents have long been customers of a certain bank, it may be easier to be successful in question;
  • Opt for loans between individuals: it is a loan that, in some cases, may be easier to apply for and obtain. This is not always the case, also because the companies that manage loans between individuals are real financial companies authorized by the bank , but sometimes solutions could be found which, elsewhere, are not found;
  • Contact relatives and friends: you can also make loans between relatives, free and non-interest-bearing. Think of parents who lend money to a child, for example. The basic rule is that the payment is traceable (bank transfer, for example).

Loans for unemployed young people without guarantees

As anticipated, the presence of a guarantee is fundamental to be able to obtain loans for the unemployed, without it the response from the lender will most likely be negative.

Having said that, what guarantees would be needed?

  • personal guarantee, ie a guarantee, ie the guarantee provided by another person (a parent, relative, partner, friend) with which he or she undertakes to pay the installments if the main debtor (ie, who requests the loan) does not fulfill;
  • real guarantee, for example in the case of renting a property, or if you have other fixed monthly income with which to guarantee the regular payment of the installments.

In both cases, however, it must be kept in mind that these are always secondary guarantees, ancillary to the main one, which in any case remains the presence of a job.

For this reason, unemployed young people may still not be able to obtain credit from a bank or financial institution.

Loans for unemployed to start business

For all young people who want to start a new economic activity there are entities, regional, which have provided funds to be granted as non-repayable loans or as loans at subsidized conditions, with which to start a new economic activity.

In this case, depending on the conditions of the loan, you can also receive the entire sum.

In this case, the guarantee is usually offered by the organization organizing the competition, whether it is the Region, the State or directly the Union.

Loans for young housewives

Loans for young housewives

A housewife, or a woman who does not work but who has decided to stay at home, does not have great opportunities to borrow money because that of the housewife is an unpaid job and, as such, does not provide the right economic guarantee.

Despite this, there are some financial companies that offer loans for housewives, we have already talked about it here on Loans Online , whose main characteristics are generally two:

  • however, they ask for guarantees, which can be provided by the husband or partner;
  • the sum of money that can be requested almost never exceeds 1,000 / 2,000 / 3,000 dollars (therefore they are small personal loans).

Loans for unemployed young people, in conclusion

We said, therefore, that finding loans for unemployed, unemployed young people is not easy and that it is essential to offer guarantees, even if there are “ad hoc” solutions.

We have said that it is difficult to obtain credit for a young person without a job, and we also confirm this in closing. The absence of a job, added to the young age, makes it really complex to be able to obtain credit, often even for small amounts.

However, trying does not harm, provided you know what to do if the loan is refused.