Do you find that you will not be able to pay on an expiry date? Or that you cannot even repay the entire loan? Then it is important that you contact the bank quickly. If you take the initiative yourself, the lender (Mother Courage or others) is usually more willing to make an amicable settlement. Consider payment facilities or an extension of the term of the loan.
But there is of course a downside to that flexibility: any change to the credit terms can cost you money. Perhaps the interest rate becomes less interesting or you have to pay extra costs.
How does the bank act?
Don’t panic: the bank cannot simply decide to sell your property. The law determines and limits the options that a bank has to act.
- If you do nothing yourself, you will first receive a reminder to pay the overdue installments.
- Within three months after you have not paid a repayment, the credit institution will send you a notice of default by registered letter. It tells you what the consequences are if you do not pay.
A few months delay in payment does not immediately lead to a forced sale of your property. For this, the bank must go through a procedure. The first step after canceling the credit is a reconciliation attempt before the attachment judge, then the appointment of a notary in charge of the sale, etc.
Will you be on the list of defaulters?
If you have still not paid an installment three months after the due date, the bank is obliged to report this to the National Bank’s Credits for Individuals. A “negative” registration then follows: you will be placed on the “black list”. That makes it harder for you to take out a loan. Your file will remain in the system for up to a year after you have cleared the excess.
Your banker can help you
Is your repayment capacity falling due to unexpected circumstances? Then don’t wait until it’s too late and request a meeting with your banker immediately. He will certainly show understanding and try together with you to find a solution to alleviate your monthly financial burden. With a mortgage loan, for example, several interventions are possible. Of course a credit investigation is always required and an agreement must be obtained from the credit committee.
- Deferred payment of capital : the amount of a monthly payment includes both capital and interest. To reduce the amount, your bank may propose to temporarily postpone the repayment of the capital. Postponing interest is not possible.
- Extending the term of the mortgage loan: a longer term of your credit can be interesting. You then pay back the capital over a longer period, so that your expenses naturally fall each month.
- (Partial) early repayment : if you still have some savings in hand, you may be able to repay your mortgage loan (partially) early. As a result, your most monthly financial charges fall or even disappear