The debt reunification It involves grouping all the loans and mortgages that are contracted into a single loan. In this way, you will only have to face the payment of a single monthly installment of an amount less than the sum of the different installments that had to be faced. In other words, they collect debts to reduce considerably what is paid per month. On the other hand, the amortization period and the final cost of the transaction are increased due to interest.
If you wonder how to reunify debts, You have to know that this operation can only be handled by specialized companies: mediators. These allow us to unify loans and mortgages that are had with different banks or with different interest rates. We can also reunify debts through a bank with which we have most of the loans or mortgages outstanding.
The reunification process
How can I reunify my debts? Surely you have ever asked yourself this question. The first thing is for the mediator company to study the specific case. Debts, interest and repayment terms will be analyzed. The idea is that, once the operation is approved, the new payment conditions can begin to be negotiated with the different banks.
When the process is underway, all our loans and mortgages will be canceled to reunify them in a single mortgage with the new negotiated conditions. This new mortgage will add up to the total of our outstanding debts and will have a new interest rate and a new repayment period, usually longer to reduce the monthly payment to be paid.
Expenses derived from the reunification of debts
In addition to the interest cost, there are other expenses. Taking into account that debt reunification loans involve the early cancellation of all loans, the most common is that you have to pay the usual fees for cancellation or early repayment.
In addition, to unite the debts, it is necessary to formalize the opening of a new mortgage, with all the associated expenses: commission for opening the mortgage, appraisal costs of the home or mortgaged property, tax on documented legal acts and notary fees.
Finally, if you choose to manage reunification through a mediating agency, you must bear in mind that it will have its own fees. In case of reunifying debts through the bank, they usually do not charge commissions.
Requirements to reunify debts
The first is that you cannot choose to unify some debts and not others. That is, you have to group each and every one of the loans that you have under the same mortgage.
The second requirement is that the amount of the new mortgage does not exceed 80% of the value of the mortgaged property. The usual thing is that the usual requirements that are given for the granting of any mortgage are also requested: stable and demonstrable monthly income, not being on any list of defaulters and presenting a guarantor.
As you can see, the benefits of debt reunification they are obvious but there are many variables to take into account.
– .
