1. What should I do if my mortgage is overdue?
First of all, overdue is divided into three types: less than one month overdue, overdue caused by false information, and overdue more than three months. The specific measures that users should take are as follows:
1. If it is less than one month overdue, take the initiative to call the bank to explain the reason and ask the bank to issue a non-malicious overdue certificate. If there is a non-malicious overdue certificate, it will not be affected when applying for a loan in the future.
2. If the overdue is caused by false information, you can go to the local People’s Bank to file an objection, and you can get the result within 15 working days from the date of origination. If the bad record is eliminated, you can apply for a loan immediately.
3. If the overdue record exceeds three months, and the principal and late fee are paid, you must maintain good credit habits on the repayment date. If the credit card is overdue, do not cancel it. You need to wait for two years before buying a house or you can not buy a house with a loan in your name.
2. What are the consequences of frequently overdue mortgages?
1. Penalty interest
If the overdue time is not long, but the overdue times are many, it means that you have the willingness to repay, but you often forget or the funds are not in place. There should be a provision in the mortgage contract that the floating interest rate will be used as a daily penalty interest after overdue. The regulations of each bank are different. For example, Citibank will charge 50% interest based on the original interest rate. For details, please refer to the contract.
2. Loan application rejected
Since housing loan is a relatively important loan business, they will be displayed in the credit report. Once overdue, it will leave credit stains, but the impact of overdue for a few days is not particularly large, as long as the repayment is made in time. However, some banks with strict risk control will directly reject your loan application and card application if they see that you are overdue, making it difficult to handle credit business in the short term.
3. Increase repayment pressure
If the mortgage is overdue, not only will you continue to undertake the obligation of repayment, but also additional penalties will be added. The amount of the penalty is different for each bank, and most of them are charged 30%-50% based on the original loan interest rate. If you are overdue for more than 7 days and you have not made up the arrears, you will need to pay a fine and a late fee together.
4. Prosecute
It is often overdue for a few days, as long as the follow-up is paid, it will not be prosecuted. If the repayment is overdue for a long time, more than 3 months, the bank can file a lawsuit against the borrower and require the borrower to pay according to the terms signed in the loan contract and the guarantee contract.
Once the loan is overdue, the loan handling bank will report it to the central bank’s credit information system, leaving a bad record in the borrower’s credit report, resulting in personal credit damage. Even after the arrears are paid off, the overdue records cannot be eliminated quickly, and generally, they have to be kept for at least five years before they may be deleted by the system. It is recommended that borrowers develop the habit of repaying on time to avoid overdue payments. Because the mortgage is automatically repaid by binding a bank card, you must pay more attention to whether the funds in the card are sufficient and whether the card status is normal.
