Is this the right time for home loan repurchase?
The repurchase of credit is a suitable way to allow a borrower in difficulty to repay his loans. It’s the least of things and without impact. In fact, the loan buyback reduces the amount to be paid per month in three ways:
- get a cheaper loan from a bank that will repay the outstanding capital,
- extend the loan term,
- consolidate all debts from various loans into one
- . Banks are not obliged to accept a redemption request. Here’s how the borrower should act in case of refusal to buy back credit.
Request a grace period from a district court
In good faith, that is to say without false statement or intention to take advantage of a loan to live beyond his means. In order to provide relevant evidence of the difficulty in paying, the debtor may seek the assistance of a judge. The latter is then responsible for ordering the bank to temporarily suspend payment of monthly payments for 3 to 12 months. Then he may postpone the maturity of the loan. This period makes it possible to postpone the expiry of the pending credit. In this respect, you have to take advantage of this time to find a more sustainable way to assume your loan, correctly. The use of loan buyback at a lower rate, with a duration at least equivalent or longer, will be welcome.
Enter an over-indebtedness commission
Before proceeding with this radical method, the debtor in difficult situation, like the job loss, can try several remedies. He may ask the loan insurer to repay the outstanding capital due under the insurance contract. He can also ask for help from organizations. In the event that no favorable outcome is found, the debtor sends a letter to the Banque de France at his place of residence to request the seizure of an over-indebtedness commission. The debtor will then be registered with the FICP. If his claim is accepted, it is the over-indebtedness commission which is in charge of finding a favorable arrangement with the creditors.