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Financial crisis – The risky mortgage
Wach, many house owners, when it became known that German banks brisk trade in personal loans too. Loans amounting to around EUR 20 billion were sent to (mostly U.S. companies) sold. Integrity house owners, for example, had a sudden other creditors, the other port conditions presented. Fast, new laws to protect the homeowner created (risk limitation law).
Can my house because of the financial crisis jeopardized?
Yes, it is possible! The long arm of the financial crisis may also be the loss of the house lead. Hypo Real Estate is, for example, a mortgage bank whose mortgage business about 250 billion euros is heavy. If it is insolvent, you may fall all land, all mortgages in their business have been provided as collateral in enforcement. The safest course is pristine property with a land register entry.
What is the difference between mortgage and hypothek?
Most home buyers need so money, and it lends itself usually with a bank. The bank wants the money for a security: This is the mortgage or the mortgage. The bank clerk is willing to purchase a contract to sign, usually long and complicated. Few are the works contract by a solicitor to explain. With the signing of the Treaty, the Bank is now a mortgage acquired.
* Debt ratio: A Hypothek is a lien and not a separate debt. It is directly linked to an existing loan agreement attached.
* Debt burden: it corresponds to the residual amount in the current loan agreement. If you have a mortgage in the amount of 100,000 euros and this has in the land as a mortgage is registered, then the entire amount is 100,000 euros to this. Who his mortgage abzahlt reduced his debt every month and every year. Very easy.
* Repayment: If the loan is fully repaid, the lender the mortgage as a lien in the land clear.
The mortgage as security has become rather rare. Most of the time a mortgage agreement. This land is but a double-edged sword!
* The advantage: the land, both for bank and debtor a comfortable advantage. The debtor may be calculable risks the new house “Collateral.” A new car? No problem, we have the mortgage!
* The downside: In the mortgage deed is an enforcement subjugation included. The bank can thus quickly to the house (and on the entire property and income) access. Because the mortgage is signed, a clause in which the mortgage purchaser, with its total assets liable. Therefore, the disadvantages of the land particularly serious.
* Debt ratio: The mortgage is a legally separate obligation between debtor and creditor. The mortgage is in the land register. One then has the loan agreement and mortgage.
* Debt burden: If you have a loan of 100,000 euros has, one has first of the remaining amount of the loan, thus beginning the 100,000 euros. Additionally you have the land registered in the land of 100,000 euros. The registered land is not even as mortgage decreases continuously. The amount is up for deletion is in the land. It has thus somehow suddenly doubled its debts. In this case, then you start with an entire debt of 200,000 euros. If one of 50,000 euros has paid off, you still 150,000 euros debt.
How do you best prepare for now?
Who the highest security against unwanted access, you should work to erase the mortgage.
First, we deal with the contract work in the land and see it: Is there, for example, noted that the land only with the consent of the owner may be transferred? Is the purpose of securing declaration on future receivables, or only extends only to the loan terms?
Then you should necessarily come from a competent lawyer’s advice! The legal situation is complicated, with various special cases and can be garnished to change. Man should be borne in mind that the legal situation in case of fire area like banking bankruptcies also could change very quickly!
The safest course is, of course, the cancellation of the mortgage. If the loans are repaid, the owner of the cancellation of the mortgage by the creditor demand. The cancellation is not automatic! The creditor must submit a cancellation authorization. The owner must agree to delete the notary and law enforcement request.
Even the conversion of land during ongoing contract is entirely possible – but not necessarily easy. The bank must of course be prepared to do. You should first speak with the notary and then with the clerk at the bank. This then sends a notary consent to a cancellation authorization. A new mortgage contract must be attached. The land is the land cleared and the mortgage registered. Of course this causes the costs. The bank will perhaps dissuade them and refer to these costs. Do not be discouraged, possibly yes, the cost is lower than expected.