Real estate investment is a safe bet. In fact, investing in stone is a great savings solution . This investment secures its future . If you experience some financial difficulties, you can claim a loan buyback for real estate. What are the causes of debt? How does this financial operation work? Who can request it?
What are the main causes of debt?
Contrary to popular belief, the causes of indebtedness are not mainly due to overconsumption of credits . Since the entry into force of the laws governing consumer credit, consumers can no longer borrow if the over-indebtedness rate is greater than or equal to 33% .
For your information, we remind you that the ratio is calculated by calculating the ratio between the income and the expenses of a household. If the overconsumption of credits is not the main cause, what can push consumers to request credit redemption?
The change in the way of life of the French as accidents of life are the factors that encourage consumers to restructure their budget. For example, in the event of divorce , it is necessary to separate the real estate between the ex-spouses. When a person finds himself in a position of dismissal , he will have to face new financial difficulties because of the drop in income.
What are the different types of redemptions for mortgage loans?
Reduce the amount of monthly loan payments to be repaid to stabilize the household's financial balance; here is the purpose of the mortgage repurchase . There are two types of financial products:
- The restructuring of mortgage loans . In this case, the organization only takes over mortgage loans in progress.
- The full repurchase of mortgage loans and consumer loans (also called repurchase of mixed credits). Here, the financial institution offers to make the full recovery of all your current credits including unpaid and bank overdrafts . Be careful, however, 0% loans and 1% housing loans do not come under mixed buybacks.
We would like to put you on alert on the duration of the credit. The duration of the loan varies on average between 5 years and 30 years. To reduce the monthly payments as much as possible, the duration must be extended . However, this extension also generates a much higher total cost of credit. Before signing the loan offer, always compare and verify the final loan amount . A loan commits you, so you have to bet on caution.
Who is the mortgage repurchase for?
The repurchase of real estate loans is only intended for people who own real estate ( civil servants, retirees, skilled workers or not… ). It can be an apartment, a second home, a villa, a garage or even a company.
Other consumers can only have access, under certain conditions, to redemption for consumer loans. And for good reason, the owner calling on a financial institution to renegotiate his mortgage can mortgage his property (or one of his property). Proposing the mortgage of his property solidifies the application file. This guarantee will be of great help in being able to reassess the amount of credit , greatly extend the duration of the loan and readjust the monthly payments since the mortgage serves as collateral.
In addition, you should know that age is a decisive criterion in obtaining this type of credit.
To clarify this article, you should know that people who have filed for over-indebtedness commission with the Bank of United States as well as people listed in banking prohibition are not entitled to this help.