When applying for a mortgage , probably no one thought that he would have problems with its repayment. Similarly, he and the bank that grants such a loan is assumed that all liabilities will be repaid in a timely manner. However, in the Life happens and it can happen something that will cause the borrower will face a lack of money to pay off the installments . What then to do?
First of all, do not panic. It is also not recommended, pretending to other banks and taking out another loan, which will be used to repay the outstanding installments. This may result because falling into a debt spiral that leads from imminent bankruptcy.
The best solution is to go to the bank in which the borrowed money and the specific representation of the situation. Do not lie then, only present the case to put, at the same time proposing any solution to the problem. Bank also will depend on the positive solution of the problem, because he also has an interest in ensuring that the loan was repaid on time.
There are several ways to improve the situation. You can, for example, extend the deadline for repayment of loan installments , which will reduce the monthly burden. Installment will simply lower and the borrower will have a greater ability to pay it back. Another way is to increase the security for the loan , so the bank can reduce the amount of interest, which also translates into a reduction in installment. If financial problems are only temporary and in the long term, the borrower's financial situation returns to normal, you can ask the bank about the "financial holiday", or temporary suspension of loan repayments . When finances get back to normal, the repayment will be continued.
In contrast, when the bank does not want to go too much to negotiate terms of the agreement, it is possible to take a loan refinancing with another bank, where conditions are more favorable. The resulting amount we spent on repayment of the first commitment, then there is only the one loan, which, thanks to lower installments, will not constitute so large burden on the household budget.