In the area of loans, mortgages and credit loans are two common products. In general, mortgages give a much higher amount than credit, and many tend to opt for mortgages in times of financial constraints. However, did you ever think that “the mortgage bank would look into the debt?” And the question? Yes, banks do。

The mortgage bank will look into the debt

Both banks and other financial institutions check the applicant ' s letter of request when the loan is approved. If the applicant is over-indebted, the bank may reject the loan application。

In terms of letters of demand, what are the risks associated with overdue mortgages

First of all, the delay will damage your credit records. Once the loan has expired, the credit report will leave such a record, which may lead to a decline in your personal credit rating and hinder future financial activity。

Secondly, if it is seriously overdue, the bank has the right to apply to the court for closure of your property, which means that you will be at risk of losing it。

Thirdly, the delay in repayment leads to an increase in interest and penalty rates, so the longer the delay, the more money you need to pay, increases the pressure for repayment。

Fourth, the right of the bank to cancel the loan contract and to require you to liquidate the outstanding principal of the loan once in a while will undoubtedly place a heavier burden on you。

Finally, the overdue loan may also lead to a further deterioration of your financial situation and may even risk bankruptcy。