House-purchase loans have now become the norm for many, as the purchase price was still relatively high and it was difficult to make one-off payments. When buying a loan, many people are concerned that if they have problems repaying the house, the house will be taken away. So, how long before the mortgage is taken

How long before you pay the mortgage

First, we need to be clear that there must be a specific period of repayment in the contract for the purchase of a home. If the loanee is overdue, the bank may impose a fine at the overdue interest rate specified in the contract, while a certain amount of follow-up measures may be taken to expedite repayment. These include: sending reminders, calling by telephone, etc. In general, banks give a certain degree of tolerance to repayments, delay one or two days within the margin of error and generally do not take too harsh measures。

From a legal point of view, it is only when the time is long overdue and the lender refuses or is unable to repay the money that the bank sues for restitution of the house and then recovers it by legal means. At the domestic level, however, the enforcement of the law on loan contracts is not strong, and the specific delay depends on the enforcement of banks and courts. As a result, there have also been instances where lenders have been long overdue without repossessing their houses。

Secondly, we also need to know about the economic losses caused to banks and to the lenders themselves by the time the loan is overdue. If the payer is long overdue, the bank not only bears the additional risk but also exposes the bank itself to the risk of financial loss. At the same time, the impact of long-term non-payment on the lenders ' own economy cannot be ignored, not only will it knock on their creditworthiness, but it will also make it difficult for them to access funds, including through loans。

Finally, what we need to note is that taking away the house does not mean that the loan problem is resolved. Once the bank had taken the house back, the final amount of compensation would still have to be determined on the basis of the valuation of the house and the relative amount repaid by the lender. In this process, banks often use collateral auctions to minimize economic losses. Therefore, the overdue loan may not be as terrible as some rumours say, but it cannot be taken lightly。