The last issue that the customer thinks about when concluding a contract is solvency trouble. Still, he should be prepared for problems with paying off the loan. In crisis situations, he has several options to choose from.
A mortgage for the purchase of an apartment or building a house is usually a commitment that lasts for several dozen years. Precautionary orders to prepare for undesirable situations that may occur in the long run.
Security for mortgage repayment
The form of security is, e.g. by buying life insurance or unemployment insurance. Thanks to this policy, the borrower is protected against financial consequences of fortuitous events, which may significantly hinder or prevent him from servicing the debt.
For example: when he dies before all obligations towards the bank (during the contract), the rest of the debt will not have to be repaid by the family – the repayment obligation will go to the insurance company.
The problem is that not every borrower buys insurance. In addition, problems with paying off installments may also result from other reasons. It may also be that the insurer refuses to pay the benefit. Then what?
The first step is to inform the bank about difficulties in meeting your previous arrangements. We should do it as soon as possible once we know that we will be in financial trouble. Such a step will greatly improve our negotiating position in the context of possible debt restructuring.
The latter can take various forms. The most popular solutions used in the event of difficulties with loan repayment are:
- Credit holidays
(suspension of repayment of the entire installment or its capital part for several months)
- Reducing the installment amount by extending the loan period
(for mortgages, the option is available only if the original repayment period does not exceed 35 years)
It involves taking a new loan combining all the client’s obligations into one. Thanks to this, he pays only one installment, which is lower than the sum of installments of individual loans. Due to the fact that the repayment time is longer, the borrower finally gives back to the bank more than at the beginning.
You can consolidate various liabilities, e.g. mortgage, cash, car, installment or credit card debt. You must first have them (you cannot consolidate one financial product).
Lendee Support Fund
Customers with a home loan are entitled to one more form of assistance. It is from the Lendee Support Fund. They can be used by debtors who:
- they lost their jobs and that was the reason for their problems with paying off the loan,
- have the status of the unemployed.
The fund also helps white t whose installment of the mortgage exceeds 60 percent. income or whose income decreased by installment is higher than current flooring y entitling to benefit from social assistance.
Lendee Support Fund covers an installment of up to PLN 1,500 PLN up to 18 months. So if we transfer more to the bank every month, we need to arrange the remaining amount on our own.
The allowance, which does not need to be shown in the annual tax return, is an interest-free loan. Its repayment begins two years after the end of assistance and can take up to eight years.