What happens if I buy a house and can't repay the loan for various reasons?
The situation seems to be creeping across the country. According to online rumors, more than 2.5 million homes have been forced to be cut off for various reasons. These houses are like silent warning lights, reminding us of the seriousness of the problem.
Many people think that just return the house to the bank and everything will be settled. However, things are far from simple. For those who have cut off their confessions, the five major consequences they face are more difficult than they imagined. These five evil consequences are like five insurmountable chasms, which make the confessors fall into endless trouble.
The first to cut off the supply has to bear the weight of the bank's high penalty interest, like carrying a heavy mountain. According to the regulations of the central bank of China, if the borrower fails to repay the loan on time, the bank has the right to impose a penalty interest of 3 to 5 percent on the basis of the original loan interest rate. This means that if a mortgage of 1 million yuan is overdue for one day, an additional interest of two or three hundred will be paid. For many families who are already stretched thin, such penalties are undoubtedly worse and deepen their plight.
Second, if the non-confessor continues to behave irresponsibly, his personal credit will be severely damaged, as if he has fallen into the abyss. Once blacklisted by the bank, his credit history is like an eternal mark that can never be erased. In the future, if he intends to apply for a credit card or loan, he will face many difficulties. Not only that, but his credit history will also be like a ** lock, restricting his work, children's education and daily life. Imagine the helplessness and despair when he was in the process of applying for a job and the company turned him away because of his bad credit history. Therefore, valuing personal credit is like valuing life, and it is never wise to cut off supply.
The third is that after encountering a supply cut, the down payment previously paid has also become a sunk cost that cannot be struck. The down payment makes up a significant portion of the purchase price, usually three to fifty percent, making it a big chunk of the house price. Imagine that in a first-tier city such as Beijing, where the house price per square meter is more than 60,000 yuan, then the down payment for an 80-square-meter house may be as high as 1.44 million. Such a number is like the stars in the sky, beyond the reach of the dust. However, once the supply is cut off, these hard-earned funds are like a river flowing eastward, and they can no longer be **.
In addition, the loss of supply may lead to homelessness. As a direct consequence of the disconnection, the house will be repossessed by the bank, and if there is no other place to live, there will be a risk of living on the streets. This is not only a blow to the finances, but also a huge impact on the stability of life. Therefore, before making a decision to buy a house, it is important to fully consider your financial situation and future stability to avoid falling into such a predicament.
The last bad consequence is that even if the supply is cut off, the debt will not disappear, but will still need to be repaid. According to financial regulations, even if the house is repossessed by the bank and auctioned, if the auction proceeds still cannot pay off the entire debt, then the debtor still needs to continue to pay the debt. In this way, not only is the house gone, but the dilemma of debt remains, and even worse. It's like adding another layer of frost to the already miserable debt quagmire, making it impossible to extricate yourself.
In addition to the above-mentioned dilemmas, the disconnection of confessions can also push us into the matrom of the law, trigger conflicts within the family, and even have an impact on social trust. Because of this, a financial product called "business loan" was born in the market, which was once hailed as the savior of home buyers and attracted a large number of customers. However, it is important to recognize that the risk of interruption of payment for operating loans is more serious than that of ordinary mortgages. This is not only a financial game, but also a challenge related to life, family and even society. Once it falls into the dilemma of cutting off the supply of business loans, the consequences will be unimaginable.
Business loans, as the name suggests, are designed for small and medium-sized business owners and sole proprietors. This loan is mostly secured by real estate, which not only has a higher amount, but also has a relatively low interest rate. However, with the boom in the real estate market, more and more people are choosing to buy a house through a business loan. Some of these people are not eligible for mortgages, while others believe that mortgage interest rates are too high. Although the interest rate on operating loans is low, their terms are relatively short, most are only 3 to 5 years.
In such a short period of time, the pressure of repayment is indeed overwhelming, which is very depressing. However, the purchase of a business loan is already on the verge of compliance, like walking a tightrope, and may be discovered at any time and suffer from the dilemma of forced prepayment. Therefore, it is not wise to choose to cut off the supply. For those who already own a property, in the current market environment, there is no need to worry too much, and it is the best policy to repay the loan step by step. For those who have not yet bought a house, if you are a family who just needs it, then please do what you can; If you don't need it, we recommend that you save your funds first and wait for a better time.