The mortgage loan , also known as mortgage credit , is a sort of loan that takes part from the mortgage on an asset or property in order to obtain capital. This particular type of loan is divided into three categories:
- Mortgage annuity loan : Mandatory subscription of a mortgage on the house as a guarantee, repayment plan from 5 to 25 years.
- Home loan : It is also granted to bad payers , possibility to customize payment installments.
- Mutual liquidity : The maximum capital must be equal to the value of the property chosen for the mortgage, the capital can reach up to 75,000 euros, however, always based on the value of the mortgaged property.
The mortgage credit requires guarantees, of a mortgage , on an asset owned by the applicant and constitutes the amount of the sum requested and the guarantee on which the lending institution can avail itself in the event of non-return.
This particular type of financing is between personal loans from the institution to the private sector, there are no variations such as the criteria for the provision of money or the calculation of the monthly sum to be repaid, the only difference with the most classic loans is the mortgage of the building in which the subject lives.
When and to whom is it convenient?
This is the most complete solution for anyone who wants to get "medium" size capital. Considering the fact that the property given as collateral must be equal to or greater than the amount requested, it seems clear that not everyone can guarantee this loan. Usually you can get a maximum sum of 50,000 euros, to be repaid in monthly installments and a sustainable amortization plan that can last up to 5 or 25 years.
In the case of the loan the property is directly underwritten as collateral until the debt is extinguished, while in the mortgage loan to have the financing you must necessarily take out the mortgage on the property, which can not be in any way a property already under mortgage.
All the documents necessary to obtain it
How can I apply for a mortgage loan ? First of all you must have as a requirement the economic parameters and then a return on investment that varies depending on the amount required, and then be the owners of a property to be mortgaged as a guarantee for the financing. There is also to be specified, for those unfamiliar with this type of thing, that by mortgaging something (such as a house), the latter remains in any case the property of the individual.
Those who wish to apply for funding must obtain the appropriate documentation that can be obtained directly from the credit institution's offices at which they wish to apply. The documents that must be presented are:
- The document attesting the ownership of the property, or in any case of the property, which is to be mortgaged
- Your document (identity card and social security number)
- Your work contract
Subscription of a mortgage
Article 2808 of the Civil Code establishes the characters on the signing of a mortgage and effectively maintains the rights on the mortgaged property, which we remember does not remove the property to the individual, but serves only as a guarantee in case of missed payment.
The mortgage loan is subdivided substantially into three different types:
- Usufruct of a building
- The bare ownership
- Right to surface on areas where it is possible to build
What happens when the debt with the bank is not paid?
As mentioned before, in the signing of a mortgage it is specified that, if payment is missed, the bank that granted the loan becomes in effect the owner of the property given as collateral, becoming its owner also has the right to resell it in order to earn the amount of non-return.
NB The bank can not in any way seize the property that constitutes the first house or the only property .
The mortgage and the contract
The mortgage of a property necessarily implies also a limitation of the right of ownership which, even if substantially the object remains of the original owner, can lose possession in case of a missed payment of 2 consecutive installments .
It is essential to read and understand the main details of the mortgage loan subscription contract . It must be stressed how important it is to be certain of being able to obtain a monthly payment with a sustainable share so as not to run into missed payments, or in any case economic difficulties, which could cause the loss of the mortgaged property.
Termination of the contract
Recently introduced in the normative text there is a specific indication for the obligation of full repayment of the sum paid by the bank in case of sale of the property given as collateral, or in the case in which the subject performs acts that reduce the total value of the building significantly.
If one of these two circumstances is considered valid by the bank and the loan is not returned within 12 months, an independent expert hired by the bank evaluates the price of the property and sells it at the market price thus extinguishing the loan.
If a payment delay occurs 7 times non-consecutive, the bank can invoke art. 4, paragraph 2, as the cause of the closure of the contract and the repayment in a single installment of the loan disbursed.