Obviously, signing a mortgage loan to purchase a house is a happy event, synonymous with change and accomplishment. However, if you do not repay your monthly payments, the bank may have to seize your building. So be careful not to have to go to such extremes! Our lawyer will inform you about the different stages of a property foreclosure.
Prior warning
In the event of late or non-payment of a monthly payment, the bank must, within three months of the due date, send the borrower a warning sent by registered mail setting out the consequences of non-payment.
In the event of non-compliance with this obligation, the contractual increase in the interest rate for late payment cannot be applied to the said due date. In addition, for this deadline, a payment period of six months without additional fees or interest must be granted to the borrower. This period will begin on the day of the unpaid due date.
If the formality is respected, the bank may demand an increase in interest and resort to early repayment of capital. However, this total early repayment of the amount borrowed can never take place due to the actions of the lender.
Attention ! The lending organization is required to communicate any non-payment to the Central Individual Credit Office as soon as an amount has not been honored within three months after its due date or an amount has not been paid within the months following the sending of the warning.
Attempt at conciliation
The law provides, under penalty of nullity, that an attempt at conciliation must take place before the Foreclosure Judge at the initiative of the lender, at the latest within 15 days of notification of the prior order to pay.
This mandatory step will aim to allow the borrower in difficulty to request payment facilities and, if necessary, to plan again for the future.
Real estate seizure and execution
The seizure of real estate must be preceded by an order, served by bailiff’s writ. This order will be valid for 6 months and the seizure can only be made 15 days after the order. The law provides for a period of 15 days in the event that conciliation is successful between the parties. At the end of this 6-month period, the bailiff will be able to carry out the seizure which will be transmitted to the Mortgage Office. Within the month of the seizure being transcribed, the Judge will appoint a notary responsible for proceeding with the auction of the seized property, at the latest within 6 months of his appointment.
Opposition to a real estate seizure and execution must be filed, under penalty of forfeiture, within fifteen days from the date of the order or the first act of seizure served by the creditor to the debtor.
When faced with a repayment problem, focus on dialogue in order to find an amicable solution with your lender, such as granting payment facilities or extending your loan.
Because as the saying goes: “A bad settlement is better than a good trial”.
