If you took out a substantial loan from a bank, for example, a mortgage, then there is always a risk that with a long repayment period at some point your financial situation will deteriorate and you will not avoid delays or even a situation where the loan cannot be repaid. In this case, the bank through the court can impose a foreclosure on your apartment, and you may end up on the street. How can you avoid this?
Instructions
Step 1
Lawyers defending borrowers in such litigation first of all advise: as soon as a situation arises that you cannot repay the loan in part or in full, write to the bank an application for a deferral or installment plan for the loan repayment, that is, on debt restructuring. Moreover, you need to contact the bank regularly throughout the entire period until your problem is resolved, and apply in detail, that is, with specific proposals and a description of the difficulties that have arisen. It is very important that you constantly negotiate with the bank.
Step 2
If the bank goes to court, you will need to be able to prove that you are not a hard-core defaulter, and that your failure to fulfill your debt obligations is due to external reasons, such as job loss, illness, financial crisis in the country, etc. will convince the court that you did everything in your power to pay off the debt, both in relation to the bank - trying to resolve the situation - and in relation to your own financial solvency and ability to repay the loan.
Step 3
In court, you can stress that the bank (and this is a common practice) did not inform you about the penalties, as well as about the way of fulfilling the obligations to repay the loan. Usually banks send claims to their debtors, where they indicate the total amount of debt and the amount of fines, but they do this already before going to court and also do not send a calculation of this amount. They describe in detail the penalties and requirements for collecting the amount of debt through the sale of a mortgaged apartment at a bank auction already in a statement of claim to the court.
Step 4
In court, you can also dispute the bank's appeal to a collection agency to "knock" your debts out of you. This is considered a voidable transaction, so you can demand that the bank's agreement with the collection agency for your debts be recognized as invalid.
