Obviously, signing a mortgage loan for the purchase of a house is a happy event, synonymous with change and achievement. However, if you do not repay your monthly installments, the bank may be forced to seize your property. Be vigilant to avoid reaching such extremes! Our legal expert informs you about the different stages of a property seizure.
The prior warning
In case of delay or non-payment of a monthly installment, the bank must, within three months of the due date, send the borrower a warning by registered mail outlining the consequences of non-payment.
If this obligation is not observed, the contractual increase in the interest rate for late payment cannot be applied to the said installment. Furthermore, for this installment, a six-month payment period without additional fees or interest must be granted to the borrower. This period will start on the day of the unpaid installment.
If the formality is respected, the bank may demand the increase of interest and resort to the early repayment of the capital. However, this total early repayment of the borrowed amount can never occur due to the lender’s actions.
Attention! The lending institution is required to report any payment default to the Centrale des crédits aux particuliers 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 month following the warning.
Attempt at conciliation
The law stipulates, under penalty of nullity, that an attempt at conciliation must take place before the Seizure Judge at the lender’s initiative, no later than 15 days after the notification of the prior payment order.
This mandatory step aims to allow the borrower in difficulty to request payment facilities and, if necessary, to project themselves into the future again.
Property seizure execution
The property seizure must be preceded by an order, served by a bailiff’s writ. This order will be valid for 6 months, and the seizure can only take place 15 days after the order. The law provides a 15-day period in case a conciliation is reached between the parties. At the end of this 6-month period, the bailiff can carry out the seizure, which will be transmitted to the Mortgage Office. Within the month of the seizure’s transcription, the Judge will appoint a notary responsible for proceeding with the auction of the seized property, no later than 6 months after their appointment.
Opposition to a property seizure execution must be filed, under penalty of forfeiture, within fifteen days from the order or the first act of seizure served by the creditor to the debtor.
In the face of a repayment problem, prioritize dialogue to find an amicable solution with your lender, such as granting payment facilities or extending your loan.
As the saying goes: “A bad settlement is better than a good lawsuit.”