A repossessed floor is always a problem for all parties involved. With the development of the crisis, many families have found themselves in the need to declare themselves insolvent for the payment of the mortgage. If this situation occurs, the houses seized by the bankarise.
Banks will always demand the collection of outstanding debts and, for this, they will do everything possible to recover the value of the debts through the seizure of the assets of the debtors.
The attachment procedure is launched at the moment when the debtor has become insolvent to deal with the debts and no other agreement has been reached with the bank. It is important that you know the process that is followed to carry out an embargo.
How Do You Proceed with Homes Foreclosed by the Bank?
Foreclosed homes are the result of a long process that is often very painful for homeowners. It all starts the moment debtors stop paying mortgage bills.
At this time, a first notice of non-payment is received 15 days after you have stopped paying. If more than 5 months pass without having paid the mortgage, it is when the bank can incorporate the debtor’s data into the delinquent file.
In the event that the situation is not fixed, the bank will make the necessary communications so that the civil registry reflects all the burdens that weigh on a property. The bank will have made the claim of the situation before the court and will send a letter to the debtor with the total amount of the debt.
Once the process has begun, between 6 months and a year after the first default occurs, the call for the auction takes place.
If in the auction process the property does not reach the value that the bank considers necessary, you can choose the option of keeping the house.
Steps to stop the seizure of a house
It may be the case that the value of the foreclosed home does not correspond to the debt at auction and that, even so, there is still outstanding debt.
At this time is when the situation of eviction occurs. However, you can avoid reaching the situation of eviction through some measures:
#1 – Avail yourself of the Government’s moratorium
You can benefit from a government moratorium by which it is possible to spend a period of 24 months without facing the payment of the mortgage in full,but half.
#2 – Negotiate with the bank
In many cases, if information is already available on the impossibility of making payments, it is possible to negotiate with the bank a postponement of the seizure procedure,so that the fees are reduced.
In some cases, you’ll only pay interest or principal, which helps you keep coping with payments.
#3 – Unemployment Protection Insurance
You can take out this insurance together with the mortgage so that, in case of not being able to face the payments, it is possible that you have covered up to a full year of installments thanks to this insurance.
#4 – Sell the house
The sale of the house is another of the options that are usually adopted to avoid the seizure of the house.
In this way, it is necessary to put the house up for sale before the seizure situation,allowing the sale to be made and thus pay the debt.
How to manage the sale of foreclosed homes
If a house has already been seized and the seizure procedure has been done, it is not possible to sell it since the bank proceeds to block it for sale or rent.
In this case, it will be the bank that puts the house up for sale once it has been seized in order to recover the value of the debt.
There is a somewhat varied situation in the case of the sale of foreclosed houses. In many cases, banks proceed to sell the house when the process of seizure and eviction has not yet taken place.
This means that the sale is made without possession. In this way, the new owners have been able to acquire a home at very reduced prices, but that still has the previous owners living inside. In this way, procedures are reduced and costs are saved, but they are particular situations.
Another of the situations that occur are those in which the bank offers housing at even lower prices but in exchange for the new buyers taking care of the eviction expenses. In this case, the lawyers and solicitors must be borne by the buyers.
As noted, it is clear that a situation of seizure is not the last phase in the management of a home, there are options and formulas both to avoid reaching this embargo, and to proceed to the sale of the house once it has occurred.