Understanding Mortgage Termination and the Role of a Banking Lawyer

(openPR) If the mortgage is canceled by the bank, it is a blow for borrowers. However, termination is only permitted under certain circumstances. If you have any problems, a banking lawyer can help.

Banking law knows the mortgage and the land charge. Both are mortgages, but have an important difference that should be taken into account when concluding a loan agreement, according to the business law firm MTR Legal Rechtsanwälte. MTR Legal provides clients with a lawyer experienced in banking law.

The mortgage is tied to the bank’s claim. It decreases at the same rate as the loan debt. The mortgage, however, remains in effect, even if the loan has already been largely repaid. If problems arise when deleting the mortgage, a lawyer experienced in banking law can help.

According to banking law, termination of the mortgage is only possible on an extraordinary basis. The reasons are the deterioration of the customer’s financial circumstances, his securities or the customer’s default in payment. It is also possible that the bank refers to the provisions in its general terms and conditions when terminating the mortgage. Since termination can have serious consequences for the borrower, such as foreclosure of the property, he should consult a lawyer.

As in other areas, banking law provides that the consumer is more protected than the entrepreneur. Before terminating a real estate loan and the mortgage, the consumer must be completely or partially in arrears with at least two consecutive installments. In addition, he must be given at least two weeks to clear his arrears. When negotiating with the bank, it may be advisable to consult a lawyer experienced in banking law.

The consequence of terminating the loan and the mortgage can be a corresponding entry in Schufa, which in turn can have further negative consequences. In order to avoid such consequences, you should speak to the bank at an early stage with the help of a lawyer experienced in banking law in order to find solutions.

MTR Legal Rechtsanwälte advises on loans, mortgages and other questions Banking law.

Take now Contact on.

➤ Lawyer Banking Law – find out more!