What happens on having stopped paying the mortgage?
31.03.2008
To: What happens when we cannot pay the mortgage loan?
The process of non-payment of the mortgage is the following one, first of all the juridical consultancy of the financial institution, before the non-payment of between three and six quotas, and after having needed so that it is paid, it opens a procedure of mortgage execution. Namely he sends to the court a demand so that the loan contract breaks. An important detail is that there does not take place the claim of the monthly salaries that owe but the whole amount given and dependent on payment to an interest rate that can go so far as to patrol between 20 % and 25 % (according to the signed in the mortgage), as if it was a rapid credit.
Procedure of mortgage execution
This procedure of execution of mortgage is more rapid enough than that of sequestration of goods. It is not necessary to appeal an expert so that it appraises the value of the real estate. It is the one that gathers the mortgage loan and serves to auction effects.
The court goes to the bad debt that has admitted to step the demand of execution of mortgage. í‰ste it can carry a new payment request out. On having received the notification, it can be opposed, although in this type of executive judgments the causes that appear in the law to do it are to have already paid or to disagree with the quantity that requests the bank and little more. If until now the bank or box has gone of the hand of his lawyer and attorney - whose cost will pay entirely the bad debt - this one would not need to appeal these professionals, although “another element to be opposed and to gain time is that the lawyers we detect form defect”.
Those that perceive less of the double of the interprofessional minimal salary have free justice. Very important to bear it in mind facing Judgments with banking institutions.
The debtor - if it is his familiar housing - he can pay the principal one and interests that it owes and the coasts, with what one would declare the procedure completed. This, that earlier could be done once in the life, now can recur every five years.
If it is not possible to pay the procedure ends with the auction of the building that notifies the debtor to itself with 20 days of advance. New term in which he might pay. According to Enrique López, spokesman of the General Council of the Judicial Power, the average time of a procedure up to the putting on the market of the building is eight months. “In other countries it is three times more, what gets dearer the mortgages”, it indicates.
The Euribor reaches his second annual maximum
26.03.2008
After several months with tendency to the fall, the Euribor has broken his tendency, what it affects negatively to the employed mortgages one year ago with annual review.
The Euribor has increased due to small existing calmness on the financial markets for the crisis in the United States. Of continuing with this tendency, it might close in March with 4,553 %, a level that was not reaching from July of last year
According to the information offered by the Spanish Bank, the indicator closed in January with 4,49 % and in February it fell down up to 4,34 %, the lowest level from April, 2007.
This new increase affects negatively to the employed mortgages one year ago with annual review, but it would keep practically equal those who are checked every half year. Also, this increase coincides with the increase of the valuation of individuals' slowness and companies with the financial institutions.
As has warned the Spanish Mortgage Association (AHE), this mortgage slowness will keep on increasing every month, in a soft way but d
road surface although the interest rates are supported in similar average values or lightly lower than those of last year.
The AHE thinks that the reform of the mortgage market and his next normative development will help to manage in a more efficient way the insolvency situations, and adds that the levels of dudosidad of Spain do not exceed those of most of the OECD countries, although the upturn of the Euribor can anticipate a growth of the slowness during 2008, which might be lightly superior to that of average of Union Monetary Spanish.
The absence of liquidity complicates to obtain a mortgage for 80 %
25.03.2008
The banking institutions have become more strict with the risk of return of the credit and mortgages do not grant with the same facility that earlier where easily it was possible to come up to 120 % of the value of the building.
Freedom Finance calculates that this year many of persons think of signing his first mortgage, while more than 80 % of those who already have one foresees to renegotiate the conditions of his mortgage, therefore it realizes a series of recommendations, between which it represents to be provided with initial savings.
First of all, he underlines that the ideal thing for those who think to hire a mortgage this year is that the amount of the monthly quotas places between 30 % and 60 % of the monthly income, that is to say, to study the capacity of indebtedness and bet for looking for annual reviews more than half-yearly.
To extract the maximum yield to the money, also he advises to consult with an independent adviser before the wide scale of mortgage offers at present, with more than 80 different products, and proposes to pay in 30 years better than in 25 for a minor effort.
COMMISSIONS OF THE CHECKING ACCOUNT.
As most of banks and entities demand links before granting a mortgage, like domiciling the payroll and buying some products, it affects in that it is necessary to find out first of all the expenses in commissions and of administration in the new checking account.
To obtain a commission zero of partial cancellation is other of his advices, because if at the end of every year quotas want to go forward and reduce the amount of future receipts, fiscal advantages can be obtained.
With the buy of the house it is possible to eliminate tax on 15 % on a maximum for 9.015,18 euros per year in the IRPF, by what, on having cancelled part of the debt, a double advantage is obtained: to confront minor quotas and to enjoy important tax reliefs.
DEBT REUNIFICATION.
Also, it indicates that it is possible to use the mortgage to improve the conditions of future credits by means of the debt reunification, which allows to obtain the only quota lower than the sum of all and apply the lowest interest rate, that of the mortgage, which usually ranges between 5 % and 6 %, opposite to the interest of between 12 % and 17 % of average of other forms of financing.
To assure the payments by means of protection insurances is different of the keys at that it aims to achieve “the perfect mortgage”, with a duration of between two and five renewable years, with a cost of between 1 % and 1,5 % of the amount of the insured loan, what would allow to confront difficult situations as the unemployment.
According to the information that this company handles, 85 % of the persons who pay a mortgage does not know his conditions, when the differences between some and others, as a progress of 0,5 percentage points in the diferecial for a mortgage for 150.000 euros to 25 years, can suppose a saving for 50 monthly euros.
Retop the mortgage slowness of the families
24.03.2008
The valuation of slowness of the mortgage loans granted to the families for the buy of a housing – when the non-payment of some quota overcomes three months – reached 0,72 % in 2007, the highest level from, at least, 1999, according to information of the Spanish Bank.
Also, the slowness registered in the last trimester overcomes in more three tenths the ratio with the one that closed 2006 (0,41 %) and almost it doubles the percentage reached in 2004 (0,34 %). This fact supposes a new assertion of the tendency to the rise of the slowness observed during the last year.
Also, the information of the institution governed by Miguel Angel Fernández Ordóñez reflects that this evolution has gone couple to the increase of the interest rate of the loans for the housing acquisition hired, derived from the hardening of the monetary conditions in the Euro area.
This way - the interest rate of the loans hired by the families for the acquisition of a housing reached 5,6 % in January of this year, what supposes a maximum of last years and an increase of more than two points from 2005, year in which 4 % gave beginning the successive interest rates increases on the part of Banco Central Europeo (BCE) up to the current one.
Also, this increase has been accentuated throughout the present year, since the average interest rate in January was three tenths superior to the registered one in the set of last year, when it was located in 5,3 %.
The eurí-bor falls down as it was not doing it from almost one year
19.03.2008
The type to which most of the mortgages are granted in Spain seems not to stop ranging in his behavior month after month, causing changes in the mortgage sector.
The eurí-bor descended for the second month in a row in February up to 4,349 %, the lowest level from April, 2007, when it was located in 4,253 %, according to the information offered by the Spanish Bank.
The consumers who should check every year the state of his mortgage, in spite of the descent of the eurí-bor will keep on seeing growing his quotas, since in February the said index was located in 0,255 points over the same month of 2007, when the valuation reached 4,094 %.
AFTER TWO CONSECUTIVE CAíDAS.
In these moments the eurí-bor is 0,149 points below the number of January, when it went down up to 4,498. In February the valuation ranged in his quotation intradiaria between the maximum of 4,390%Â and minimum of 4,290 %.
To burn the house to pay the mortgage
17.03.2008
The terrible situation of some families of the USA before his mortgage problems has moved to burn his houses to be able to receive the insurance and pay to the bank, a measured dramatic art that usually costs them very expensively, sometimes even with the jail. The crisis of the mortgages of high risk that began the previous summer in the USA has hurt in the pockets of many Americans in a country through that he lives on credit.
The refinancing, reunification of loans and the search of other lenders is the most habitual formula to try to face to the letters of the house. Nevertheless, they have decided in favor some of a solution more radical and driven to despair to escape from the debts: to burn his house, to receive the insurance and to pay to the bank.
Several Americans have met opposite to the judge in several points of the country, like Michigan or California, cornered before the demand of the insurers and the banks and with the only exit to assume his responsibility.
The judgments are usually condemnatory and leave the accused at large conditionally, but with a major number of debts behind him, more the costs of the judgment and without the housing that was serving to them to endorse his credits.
In Internet they have begun to proliferate blogs in that the people, who shuffles the possibility of setting fire to his properties, ask for advice on the procedure and the steps to be continued later.
Messages titled like not payment the mortgage, I burn my house, save you of paying the mortgage, burn your house, prevent the bank from remaining with your house with fire, or how to burn a house for the insurance and to leave with yours, there are mere examples of an increasing tendency. The banks initiated last year approximately 1,5 millions of mortgage executions.
Barclays renews the interest rate of his mortgages
17.03.2008
Barclays is going to renew the interest rate of his préstamoshipotecarios from next March 19, with the exception of the mortgages of fixed type to 20 years and to 15 years, which support the face-value in 6,09 % and in 6,02 % respectively, and TAE in 5,75 % and 5,70 % in every case, as he informed today the entity.
On the other hand, the stipendiary mortgage will have the nominal interest rate placed in 4,84 % from 4,89 % that it had in the previous month, and TAE will place himself in 4,84 %, opposite to 5 % of February.
The nominal interest rate of his account sitúará from next 19th in 3,96 %, reducing this way - 4,11 % that it had in February, and TAE in 2,67 % opposite to 2,77 % of February.
The young mortgage will place the nominal interest rate this month in 4,85 % and TAE in 4,96 %, opposite to 5 % nominal and 5,11 % February TAE. Also, the mortgages to five years face-value will have an interest rate to fixed type in 5,15 %, front 5,90 % previous, while TAE is supported in 5,65 %.
Finally, you her mortgage not residents situára his nominal interest rate from February 19 in 5,31 %, over 5,25 % February face-value, and TAE, in 5,10 %, below 5,47 % of February.
Route: finanzas.com
Northern Rock allows to come up in mortgages garbage
11.03.2008
The British mortgage bank Northern Rock stopped yesterday acting like mortgages intermediary subgive priority to (garbage), after entrar in a credit crisis as a result of the world situation.
The entity pointed out that it will not offer any more mortgages credits nearprime (close to the premium) not even mortgages suboccupy first place (under the premium), those of worse conditions, because normally there were granted the consumers that more difficulties were presenting at the time of returning them. Normally it was commercialized across Southern Pacific Mortgage.
Nevertheless this news will not affect to the requests that had been realized in advance. The entity pointed out that the decision has been taken mutually by two companies.
Northern Rock began to work with Southern Pacific Mortgage in April, 2007 asking in contrast for a commission for the benefits. The dealing that both companies were supporting was consisting of the fact that Northern Rock was in charge of receiving clients across his distribution channels, was proceeding with the requests and was spending them to SPML, the manager of carrying the financing of the mortgages out, anyway it was the one that had to administrar and to manage the mortgage credits.
For it Northern Rock has clarified that these credits have never gone so far as to be part of his financial balance, in which only the credits of normal insurance were included.
This way - the company has affirmed that the rest of the products that it offers will not turn out to be altered by this incidence.
efe information
100 % of financing in housings of TM Real estate Group
08.03.2008
In mortgage loans Real estate Group is offered one of the innovations by TM. It grants to help to pay the mortgage if the housing to be paid belongs to some of his urban developments and the acquisition of produce during the first year. This offer will be current until June 30, 2008. For the primeras you investigate it grants the financing of 100 % of the recommended retail price, and for second 80 %.
This offer will apply in Sandbanks Beach, Lagunagolf and Terramar placed in Alicante and in Lookout ses Limes to itself and in Pinars de Murada for his housings key in hand. With this, TM Real estate Group tries to approach an average buyer in a real estate sector in which it is anticipated that the eurí-bor will go down in the next months to facilitate the access to the housing “this way - how to relieve the family budget during the first year” there exhibited íngeles Serna, marketing manager of the TM Real estate Group.
As the company finances with its own resources, the housings do not bear any more charges, what “constitutes a guarantee of solvency and any more calmness for the buyer”. A family that wants to buy a housing, has to pay the taxes that it generates and other expenses before the delivery of the key, therefore they think “that with this help, during the first year, the family can recover from all the extra expenses, simultaneously that supposes an incentive for the buy similar to those that the government proposes”, the marketing manager added notes.
From 1968 TM Real estate Group devotes himself to to the construction and commercialization of real estate products of the first and second residence. His departments take charge of the whole process of the construction and the sale of the housing, including the financing, adapting it to the profile of the client. To
Para more information consults la web of TM Group InmobiliarioÂ
The mortgage is the first thing that is paid
08.03.2008
In this text I am going to exhibit the conclusions on personal finance to which there is llegado the journalist Nuria Salobral in the economic newspaper Five Days, after analizas the economic actuality.
According to Salobral, the último who stops being paid in moments of economic weakness it is the mortgage. The interest rates increase makes the Spanish do up one more button of the belt and limit to expiring with the monthly quota of the mortgage loan, abstaining from requesting new credits to the consumption. Of this one derives that the slope of the credits to the consumption coincides with the deceleration of the economy and the problems that have the proper banks to finance.
Now the Spanish ask for less credits to allow him a trip, to realize changes in the housing or to acquire a new car, and it is quite related to the economic priorities in delicate moments. Also the entities are cut at the time of offering too many credits.
The credits to the consumption reached an appraisal as a whole of 12,3 %. For the following three years the rise in this sense would be between 8 % and 10 %, according to the information that there offers Cetelm, an entity that devotes itself on personal credits. The Bank Santander admits that there is “a minor growth in the credit authorization to the consumption, what has being observed definitely from middle of last year”. As a result of this situation, now, the Spanish, after several years of increase in the cars buy, think it much more before buying a new vehicle. In the first two months of the year the sale of cars has fallen down 13,1 %.
That's why, to the same tismpo as the competition for the deposits with which to replace other ways of financing and of clients mortgaged in other entities managing to compensate the real estate deceleration, the personal loans remain isolated aside inside the financial promotion.
Insisting on the idea of that the mortgages is the last thing that stops being paid, the bad debts are more as regards the credits to the consumption. Anyway this type of products is still available for those who should need it and who could confront his payment, just as also the rapid loans keep on being offered although they are more expensive.
