The situation of over-indebtedness
Follow these tips if you find yourself in a situation of debt distress. Indeed, the formula of restructuring your debts with a mortgage is not always the only way out of the impasse.
Meet with creditors and stagger debts
The very first step is to make an attempt with its creditors to ask for a spread of the debt.
Try to meet with the administrations, the banks and all those to whom you owe money by proposing them a precise repayment schedule (preferably by formulating it in writing).
This approach is generally appreciated and they will probably prefer to be paid late rather than risk not being paid at all.
Set up a file with the Banque de France
If the discussions fail, you can mount an over-indebtedness file with the Banque de France commission. The latter will be responsible for studying your file and can help you find solutions.
If your application is found to be in order, the board will contact the creditors directly and attempt to resolve the issue amicably.
If no solution is provided, then the solution of the repurchase of credit will be to consider.
The debts concerned
All debts can be bought back by a mortgage. Consumer loans of course, whatever the purpose and form: permanent credit, car loan, credit work, money reserve, but also bank overdrafts authorized or not, the debit cards credit, unpaid bills and debts to the administration.
It is even possible to borrow additional money to build up cash in advance.
The repurchase of credit with mortgage requires the intervention of the notary
You will need to use a notary since the implementation of the mortgage guarantee is necessarily a deed. The latter will register at the Mortgage Office.
You must then pay the establishment fee and your home will be directly assigned to the repayment of credit in case of default on your part.
Note that if the property is already mortgaged with a loan, the new loan will be ranked second.
To whom to entrust his request?
As in the case of a home loan, it is possible to play the competition itself by negotiating the conditions with the banks. However, the situation is made more complex than when buying a home.
On the one hand because the situation of a mortgage repurchase does not put the borrower in a situation of strength (He is not always welcome). On the other hand, the technique of restructuring is not very simple to understand and analyze. Finally, it is necessary to know the organizations that are likely to study your application, all banks do not deal with this kind of request.
This is why the use of a specialized broker will provide a significant support. His expertise and experience will be of great help to you. If you choose this solution, we advise you to favor national brokers. You will benefit from the large volume of transactions, lower interest rate conditions and their network of more numerous banking partners.