And how does a debt restructuring work? In this guide, you will find all the information about rescheduling and cancellation of a mortgage loan! For early repayment, the prepayment penalty. The reason why you want to pay back your mortgage loan at the bank is varied and ranges from the sale of the house on the over-indebtedness to the desire for debt restructuring. Because they can repay and convert the mortgage loan.
Replacing a mortgage: How to deal with a replacement?
Is your mortgage due? You can find out how you can best pay off your property. You have two options to repay your property: you can either wait until the old mortgage has expired (usual for fixed mortgages) or you end your old mortgage (note the notice period!). Note: If you can not meet the deadline until the lapse of a fixed mortgage or a changeable mortgage, you must pay early.
The procedure for repaying a property is basically the same as for the conclusion of a new property: 2. You submit a request for financing to the bank of your choice. In this case, the house bank will check your bid and make you a bid. You decide to close a mortgage with the new house bank and (if necessary) pay off your previous mortgage.
The new house bank sends an irrevocable promise to pay to the credit institution that previously held its mortgage and demands the promissory note. When the promissory note arrives, the new house bank reimburses the loan and the debt is repaid. Which financial institution should be elected? As a rule, you are then connected to your “old” house bank.
Replace the property prematurely: The following measures are required
The term “mortgage” evokes many memories of childhood: With the monopoly, sooner or later everyone had to raise a mortgage. For example, a mortgage loan can only be repaid by repaying the grand total plus interest. A mortgage loan is the only possible solution for many homeowners to realize their desire for their own home.
The Finance Act has some stumbling blocks for borrowers – especially when it comes to early termination of the mortgage loan. This guide explains what you should consider when rescheduling a mortgage loan and on what legal basis the property is based. You will also get tips, tricks and information about the theme.
And what are mortgage loans? What does a mortgage borrower do? Before discussing the repayment of this loan, the relevant definitions should be explained. In order for you to know how to reschedule a property, it must be classified by law. The mortgage contract is usually considered a “consumption contract”: it is concluded between a bank and a private customer.
Thus, the Civil Code is the legal basis on which you can terminate your mortgage loan. In addition, the mortgage is a “mortgage secured loan”. In fact, your house bank does not lend you large sums of money for mortgage lending without having certain security. As a rule, she receives a security interest in the respective property.
This also applies to the so-called land charges. This will gradually replace the mortgage model. Today, however, many mortgage lending is still going on. On the basis of this land charge law, BuyNer may sell the property as a lender or sell it on foreclosure if the debtor fails to meet its payment obligations. The borrower is also liable for the liens with all his capital.
The interest amount, the term of the contract and the consequences of a breach of contract – for example, in case of premature termination of the land charge – must be part of the contract. Mortgage loans are usually fixed rate loans. In return, BuyNer undertakes not to charge any increased interest expenses. In the case of early repayment of your mortgage loan, this can be costly due to the additional costs.
It has already been proven that the early repayment of the mortgage contract is a breach of the contract. This claim serves as a substitute for lost profits and lost profits. This can also verify the claim of BuyNer for errors. In general, there are two reasons that lead to the desire to repay the mortgage: In both variants, the early termination of a mortgage loan is a very high draw by the borrower.
In German law, however, there are one or two loopholes to enforce them. In general, the term “rescheduling” refers to the replacement of one loan by another. However, the consumer pursues another purpose with the new planning of his real estate: He wants to save money. Therefore mortgage debt can pay off to benefit from low interest rates.
It is also conceivable a reallocation of the land charges in a real estate liens. Anyone who acts prematurely and reschedules their mortgage loan early can ultimately become more expensive. If you have decided on a concrete bid, you can secure it by financing the respective house bank – but not yet completed.
The follow-up financing of your mortgage loan has now been arranged. Only now is it time to cancel the original loan. Only if you agree to the repayment of the mortgage, you can sign the new lease without hesitation. If the payee asserts an excessive claim, this must be clarified if necessary before the competent judge.
The entry of your existing house bank must be canceled in favor of the new sponsor. In the event of a sale of the financed property, the loan is usually terminated as well. Exceptionally, the acquirer may buy the land charge. However, it is up to the banks to decide whether to approve the acquisition. 489 HGB provides in the interest of consumer protection, the possibility of termination of a mortgage loan after 10 years without a claim for damages is to be feared: 2 in any case after ten years after full receipt, “in this case, the borrower must observe a six-month period.
This termination right allows you to repay your mortgage loan early without paying any early repayment. The term “premature” may be wrong in comparison to the necessary ten years. The repayment after ten years still takes place within the fixed interest rate and is therefore premature.