We understand that sometimes things happen that are out of our control. When financial difficulties hit or unexpected expenses leave you with no money at the end of the month, you may have trouble paying your bills on time. Despite this situation, there are steps you can take to reduce the impact of falling behind and get your finances back on track.
Mortgage Loan Modification
If you suspect that your next mortgage loan payment may be in jeopardy, you should first contact your lender. You may also be eligible for a payment deferment or modification to your payment plan, which allows you to pay your past due amounts with future payments.
Student Loan Payments
If you’re having trouble making payments on any of your student loans, contact your lender to discuss repayment options. You may be eligible to consolidate multiple student loans or refinance a single student loan to establish a lower monthly payment with a reduced interest rate or an extension of your payment term. Keep in mind that extending your payment term may increase the amount of interest you’ll have to pay over the life of the loan. If you can show that you are unemployed and actively looking for work, going back to school, or experiencing financial hardship, you may be eligible for a deferral.
Late credit card and loan payments are generally reported to credit reporting agencies after 30 days.
credit card debt
Credit card debt can add up quickly, and late payments can significantly damage your credit score. Late credit card payments are typically reported to credit reporting agencies after 30 days. If you have a good history with your creditor, they may be able to offer you a short-term payment option with a lower interest rate and a lower minimum payment amount. Other options they might provide you with include long-term payment plans with reduced interest rates and controlled payment volumes.
Regardless of your situation, the key is to act as soon as you see a problem on the horizon. By being proactive, these steps can help you manage your debt without entering crisis mode.
What is the novation of a mortgage?
The novation of a mortgage is any change that occurs in the mortgage loan conditions at a time after the signing. In short, it is the renegotiation of the loan with the bank with which it has been contracted.
What aspects can the novation of a mortgage involve?
Mortgage novation can involve different aspects of the loan:
- The increase or reduction of the borrowed capital
- The variation of the amortization period
- The change in the conditions of the interest rate
- Modification of the amortization method or system
- The release or incorporation of new personal or real guarantees
- The currency exchange in which the mortgage is formalized
Once an agreement has been reached between the borrower and the creditor, the mortgage contract must be modified, which must be formalized in a public deed and registered in the Property Registry. Therefore, the novation of the mortgage implies a series of notarial and registry expenses, in addition to the commission that the bank may charge for carrying out the novation.
In the case of a mortgage novation due to a change of owner, we would be talking about a subrogation of the debtor.