What Happens If Client Has Not Repaid Loan

When the borrower arranged the relations with bank under the agreement on loan-pledge and at that fulfills all the liabilities both the parties are happy with mutual cooperation. If not, the financial institution, most likely, will be compelled to address to judicial authorities to prove the right to use the pledged valuable property. By the way, it is a little time required for it, as the rightness of a case belongs to the financial institution.

However, in court practice almost there were no cases of easy withdrawal of property (for example, the pledged real estate), often this procedure lasts for years. In case when the loan was obtained against pledge of valuable property the client remains the owner of the housing. It means that he may continue to live there, rent, sell it out, etc. The main condition is unambiguous repayment of means taken from bank. At that mortgaged property is just a guarantor that you will repay to bank the means obtained from it. However, in case of purchase and sale agreement conclusion with repeated repurchase the bank may receive mortgage property much quicker.

In case of timely payments for the credit and the responsible attitude to undertaken obligations any problems will never arise. Therefore, every fair citizen may become the owner of a personal quite large amount of loan. At that, the enclosed mortgage documents will become a guarantee of more loyal contractual conditions, but not a yoke on the bank client’s neck.

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