Once the loan has expired, a number of measures are usually taken by the bank or the Provident Fund Centre to urge the user to pay back as soon as possible. Users may face a number of negative impacts in this process. What, then, would be the negative consequences of overpayment

What happens when the mortgage is overdue? What are the consequences

First, it affects personal correspondence records. After the loan has expired, the bank will report the delay to the IRS, which will leave a poor record in the user's letter-in-writing reports. Typically, such negative records are maintained for five years, with continuing negative effects on the credit of users。

Secondly, it impedes follow-up credit activities. Overdue information stains affect users ' future loan needs. Users with poor records may be denied direct access to other loans. If successful, a higher interest cost may also be paid。

Thirdly, bank collection. Loans are generally not granted a grace period, and banks usually collect by text or telephone after their expiry, requiring users to pay their arrears as soon as possible. This can seriously disrupt the daily lives of users。

Fourth, create a penalty. After the delay, the bank calculates the interest rate, which is accumulated on a daily basis and is more than normal interest on the loan every day. As a result, the longer the delay, the more the penalty, the heavier the user ' s repayment burden。

Fifthly, mortgage contracts may be terminated early. Banks have the right to terminate a mortgage contract early on the basis of a loan contract if the user is too long or too many, such as three consecutive or six cumulative delays. At this point, the user is required to clear all the mortgages in advance。

Sixth, the mortgage property is at risk of being auctioned. If the user fails to pay the loan on time after the bank requests an advance payment, the bank will treat the mortgage property in accordance with the rules. In order to return the funds as soon as possible, the bank may auction the property of the user at a low price, thus exposing the user to significant property losses。

It was therefore important to maintain a good repayment record. In exceptional cases where payments cannot be made on time, the user should contact the bank in a timely manner to clarify the circumstances in order to reduce the risk of delay。