Important Considerations for Mortgage Loan Holders

Cracks caused by an earthquake, arrears in installments or an accident are some of the situations that may arise during the life of a mortgage loan. When applying for a mortgage, the emotions of the moment can cause you not to take into account certain mishaps that can put your assets at risk.

It is important to take future scenarios into account to clear up any doubts about credit and to know how to act in each of them. Buying a house is one of the most important decisions, for this reason, the digital platform for mortgage loans It’s donerecommends you consider:

What happens if I fall behind in payments? After a period without receiving the monthly payment, the credit goes into collection, this time is defined by the institution, but it is usually 2 or 3 days after the payment deadline. At 90 days late, the credit becomes overdue. Emergencies and financial complications can arise and are not synonymous with losing your credit. It is important to maintain constant communication with your advisor before the credit goes into collection. Take into account that the institution may be flexible in restructuring or renegotiating the debt.

In case of death or accident. You may wonder what happens if you suffer an accident or illness, will you leave the debt to your family? You can rest easy, most mortgage loans are linked to life insurance. In this way, the payment of the outstanding amount of the mortgage loan is guaranteed, whether due to some mishap the credit holder is diagnosed with permanent or partial disability, or due to the death of the borrower. In this situation, the process must be done by the heir. If there are several heirs, it will have to be done by the executor (in charge of managing all the assets).

In case of earthquake. Although it is difficult to think that our heritage can be damaged, we must consider the possibility that an earthquake could affect our home, remember that Mexico is in a seismic zone. For this reason, it is essential to bear in mind the contracting of insurance against natural disasters that allows us to be covered for any unforeseen event of this type. Fortunately, both life insurance and damage insurance are usually supplements to mortgage credit.

Change financial institution. This procedure is known as substitution, mortgage improvement or mortgage refinancing. It consists of changing your credit from a financial institution for one with better conditions. The loan is not canceled, only the creditor is changed, to do so it is required:

Have job and financial stability.

A period to cover the quotas. It will depend on the institution you want to transfer to.

What if I change jobs and my income decreases? As we have already mentioned, this type of long-term credit requires proper planning. That is why, in this situation, there is the possibility of renegotiating the conditions, increasing the time in which you will pay your credit or reducing the amount that you will give each month. The adjustments and conditions will depend on the institution with which you requested the loan. Sometimes the change is gradual, until you reach a fixed fee that meets your needs and allows you to plan your finances.

Can I sell my house during the credit? Yes and you can do it in two ways. The first is with a mortgage transfer in which you transfer your rights and obligations regarding the property to the new credit holder, although this option is very rare. He pays you what you already covered and takes over the remaining installments. Be careful, to give legality to the process it is necessary to do it before a notary. The second option consists of requesting a Letter of Cancellation of the Conditional Mortgage from the entity that granted you the credit. With this document, you agree to settle the debt as soon as you sell the property, as well as to continue the process with the cancellation of mortgage and the corresponding deed. The difference between the sale price and what you owe to the financial institution will be your profit, or you will be able to recover a percentage of the money invested in the monthly payments at your expense.

The credit solutions and flexibility depend on each financial institution, “It is important that you consider all of the above when choosing the institution with which you will request your credit. R.Remember that it is a long-term commitment and, In this way, you will be better prepared to make the decision that best suits your abilities and needs.” says Bernardo Silva, co-founder and CEO of Yave.