If there is a large-scale mortgage default, what will the bank do?

In case the economic situation deteriorates, enterprises have difficulties in production and operation, house prices fall, or many people lose their jobs, there may be a large-scale mortgage default.

Because mortgage default will have a great impact on personal credit, and in a market economy society, credit is extremely important to individuals. So under normal circumstances, no one will choose to cut off the supply. Even if there is a little difficulty, paying off the mortgage is not worth the loss. If the mortgage is off, it will become a faithless person, and will be restricted to take high-speed trains, planes, and other possible consumption restrictions and penalties.

I. Reasons for supply interruption

If there is a mortgage default, it must be that the mortgage borrower has great economic difficulties. Or unemployed, unable to repay the mortgage on a monthly basis; Or the house price plummeted and the loss of mortgage repayment was too great. I'd rather not have a house than pay my mortgage again.

Generally, when there are systemic risks in the macro economy, there will be a large-scale mortgage default. For example, before and after the Hong Kong 1998 Southeast Asian economic crisis, many people with negative assets appeared, and a large part of them were unable to continue to repay their mortgages.

According to the statistics of RealtyTrac, an American real estate data company, after the subprime mortgage crisis in 2008, more than 2.66 million houses in the United States were repossessed by banks and entered the auction process. And this number is increasing every quarter. According to conservative estimates, at least 200,000 families are forced to sleep on the streets every month.

After the American financial crisis in 2008, China's domestic economy was also greatly affected, especially in cities with a large proportion of exports, such as Shenzhen. With the short-term decline in house prices, many people in Shenzhen defaulted on their mortgages at that time.

Second, the case of mortgage default.

-"The house was sold for less than 2 million, but it owed the bank more than 3 million."

At the beginning of the year, Mr. Wang bought a one-bedroom apartment with a mortgage of 100 square meters, with a price of more than 30,000 square meters per square meter. But now, the price of newly-opened real estate is only 17888 yuan, a drop of more than 40%. After paying the monthly payment for six months, Mr. Wang decided to cut off the monthly payment. Mr. Wang said that the house sold less than 2 million, but owed more than 3 million bank loans.

-"Everyone is worried about the consequences of default. I and the bank are innocent. " In February this year, Zhang only paid a down payment of 10% of more than 200,000 yuan, and then bought a house with one room and one living room. Since then, the newly launched real estate prices have plummeted. "Now the house is not worthy of the price. I think this is a kind of deception. Everyone is worried about the consequences of default, and the bank and I are innocent. "

-"Last year, I spent 6.5438+0.8 million yuan to buy a first-phase house. According to the price of the third phase, it is only worth 6.5438+0.2 million now. " In 2008, an owner in Shenzhen issued such a sigh at the forum. "The best way to reduce the loss is to cut off the supply immediately and let the bank take back the house," said the owner, whose book loss was as high as 30% in the housing market decline.

Third, the impact of supply interruption on individuals.

Mortgage default is extremely unfavorable to individual buyers.

1, loans overdue will generate a high penalty interest. Even if the repayment is made later, the penalty interest will not be cancelled. The amount of penalty interest is generally agreed in the loan contract.

Once the mortgaged house is repossessed by the bank, the bank will auction it, and it is likely to sell it at a very low price. In this case, the buyer's house is gone, and the bank may continue to recover the remaining arrears, and the down payment and tax paid when buying a house are gone.

3. Credit information is becoming more and more important. The interruption of supply will affect the credit information of buyers. Long-term non-repayment of supply will enter the blacklist of bank loans, and consumption will be restricted, which will affect future travel and work. Restricting the continuous introduction of new policies and regulations in various places, the punishment measures for Lao Lai are getting stricter and stricter, and even children's schooling and civil service examinations will be affected.

Therefore, once the buyers can't repay the mortgage on time, don't cut off the mortgage easily. If you have to, you should try to negotiate with the bank to refinance, extend the loan period or apply for a suspension of repayment of the principal.

Re-lending refers to the customer repaying the mortgage loan and then lending it for use. However, the interest rate of the loan amount is higher than the mortgage interest rate. If there is a problem with the borrower's cash flow, which cannot be solved for a while, this is also a good way to deal with the emergency.

Extending the loan term means that buyers can negotiate with banks to extend the repayment period appropriately. For example, the original mortgage term was 20 years. You can take the initiative to discuss with the bank and extend the mortgage term to 30 years.

Applying for suspension of repayment of principal means that if the buyer is temporarily unable to repay the bank loan, he can negotiate with the bank and ask for a short period of time to repay only the interest but not the principal.

Fourth, how to deal with bank default?

Large-scale mortgage default has directly impacted the operation of banks. The bank's balance sheet will deteriorate rapidly, and even lead to bank bankruptcy in serious cases. The mortgage default of individual families has little impact on banks, but large banks can't afford large-scale mortgage default.

After the supply is cut off, the bank will collect it. At first, it was a short message reminder, and later it will be collected by phone or door. If the arrears can be paid off in time, the property ownership will not be affected. But if it exceeds a certain period, the bank has the right to recover the property of the defaulter, because the property is mortgaged to the bank. When the borrower buys a house, he signs a mortgage loan contract with the bank. Generally, the bank will urge repayment in the first month. The next month, I will come to ask for it. In the third month, the bank will send a lawyer's letter and enter the judicial process.

The average bank will give the property owner a six-month grace period. If the mortgage is not repaid for more than six months in a row, the bank will apply to the court for auction of the house.

After the bank repossesses the property, it will auction it through the court, and the proceeds from the auction of the property will be used to repay the bank loan. If there is any surplus, the bank will return it to the individual. If it still cannot cover the bank's arrears, then the bank will continue to collect debts.

Banks also have some flexibility. For example, recently, affected by the novel coronavirus epidemic, many enterprises delayed their work. This also makes shopping malls, physical stores, cinemas, restaurants, tourism and other industries face greater operational pressure. At the same time, some individuals affected by the epidemic may have the problem of overdue repayment of mortgage, car loan and credit card.

The state requires financial institutions to appropriately tilt their credit policies, flexibly adjust personal credit repayment arrangements such as housing mortgages and credit cards, and reasonably postpone the repayment period for those who are hospitalized or isolated due to new pneumonia, those who need to be isolated for observation due to epidemic prevention and control, those who participate in epidemic prevention and control, and those who temporarily lose their livelihood due to the epidemic.