Obviously, signing a mortgage for the purchase of a home is a happy event, synonymous with change and accomplishment. However, if you do not repay your monthly payments, the bank may have to seize your building. So be careful not to have to come to such extremes! Our lawyer will inform you about the different stages of a foreclosure.
In the event of late or non-payment of a monthly payment, the bank must, within three months of the due date, send the borrower a warning sent by registered mail and resuming the consequences of non-payment.
In the event of non-compliance with this obligation, the contractual increase in the interest rate for late payment cannot be applied to the said due date. In addition, for this deadline, a payment period of six months without additional costs or interest must be granted to the borrower. This period will start on the day of the unpaid due date.
If the formality is respected, the bank may demand the increase in interest and use the early payment of capital. However, this total early repayment of the amount borrowed can never take place due to the fact of the lender.
Warning! The lending institution is required to report any default to the Credit Central to individuals as soon as an amount has not been honored within three months after its due date or an amount has not been paid in the months after sending the warning.
Attempt at conciliation
The law provides, on pain of nullity, that an attempt at conciliation must take place before the Judge of garnishments on the initiative of the lender, at the latest within 15 days of the notification of the prior command to pay.
The objective of this mandatory step will be to allow the borrower in difficulty to request payment facilities and, if necessary, to plan for the future again.
Real estate foreclosure
The foreclosure of property must be preceded by a command, served by a bailiff’s exploit. This command will be valid for 6 months and the entry can only be made 15 days after the command. The law provides for a period of 15 days in the event that conciliation is concluded between the parties. At the end of this period of 6 months, the bailiff may carry out the seizure which will be transmitted to the Mortgage Office. In the month of transcription of the seizure, the Judge will designate a notary responsible for awarding the property seized, at the latest within 6 months of his designation.
Opposition to an attachment of real estate must be filed, under penalty of forfeiture, within fifteen days from the date of the order or the first act of attachment notified by the creditor to the debtor.
Faced with a repayment problem situation, therefore please dialogue in order to find an amicable solution with your lender, such as for example the granting of payment facilities or the extension of your loan.