| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| « Jun | ||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 8 | 9 | 10 | 11 | 12 | 13 | 14 |
| 15 | 16 | 17 | 18 | 19 | 20 | 21 |
| 22 | 23 | 24 | 25 | 26 | 27 | 28 |
| 29 | 30 | 31 | ||||
.
Entries (RSS) and Comments (RSS).
| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| « Jun | ||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 8 | 9 | 10 | 11 | 12 | 13 | 14 |
| 15 | 16 | 17 | 18 | 19 | 20 | 21 |
| 22 | 23 | 24 | 25 | 26 | 27 | 28 |
| 29 | 30 | 31 | ||||
“Hello, do you have a bank guarantee? Before you look for the name or ID of the citizen, some financial institutions to throw this question to those who were shot close to applying for a mortgage. To be eligible to get a mortgage is not enough to demonstrate creditworthiness, it is necessary to also have a good financial support to sustain the debt if the holder is affected by economic turbulence. Since 2007, when the current financial crisis, the delinquency has grown from being in the 0.40% (100 loans was not even a potential defaulter) to reach 4.14% at the end of February 2009 (now More than four out of every 100 customers do not pay your loan). Hence the banks have raised the bar of demands for money. No longer grant loans that finance 100% of the housing, which involve paying over 40% of the income of the household per month, or who do not have a mortgage guarantee.
In many cases, the parents supporting their children for financial institutions to ensure they have a solid financial backing. However, it is customary for guarantors themselves are unaware of how far their commitment to truth and what is its role as the top of the loan in case of default by the owner. This figure has also changed in recent times and now the title of guarantor can only be achieved if it exceeds a difficult examination to demonstrate their financial capacity.
What is a loan guarantee?
The types of guarantees are numerous (for hire, so renamed by the State to guarantee debt issues of banks …), but the best known and popular in these times of economic uncertainty is backed mortgage. This figure is not material but natural. Can be defined as a person who voluntarily pay a guaranteed loan if the owners of housing and benefactors can not afford the payments involved. It acts as a guarantor or a guarantor of the bank or savings bank will receive monthly letters. It is therefore a person who assumes a risk, it must demonstrate that it has assets and financial capacity to cope with the payment of dues. Who will address the entire mortgage payment when the owner can not afford it.
In times of economic boom, when demand for flats increased as the foam and, thanks to the expansion of construction, Spanish GDP grew at rates higher than 3%, the bank guarantee was an almost forgotten figure. Most of the mortgages were granted from the payment guarantees offered their buyers, without the need for external guarantors. However, given the economic slowdown and the collapse of the banking business (highly affected by the increase in delinquent mortgages), demanding a guarantee for the loan is a common practice.
When you request?
In the book style of the banks there are several rules that require the application of a bank guarantee, the first of these are loans that are asking for more than 80% of the valuation of property. If a couple wants to buy an apartment valued at 200,000 euros and you need financing for over 160,000 euros, it is normal that your bank or a bank guarantee he claimed, a person who supports their property to the borrower.
Secondly, banks are studying in depth the borrowing capacity of owners without mortgages, and only grant approval if the buyers do not use show that more than 35-40% of their monthly income on mortgage payments. An example of a solvent that does not require client is requesting approval for a mortgage of 200,000 euros for a period of 25 years, with a payroll of at least 2370 euros per month. With an interest rate of 3% should pay 948 euros monthly letter, the permissible limit of 40% of their income. If you charge less than 2370 euros, the entity will require a bank guarantee, it is judged that this salary is insufficient and does not guarantee its ability to pay.
Over the last few months, institutions have also focused on another variable: the job of the holders of the loan. Given the unstoppable rise in unemployment, banks are interested to know whether his client may or may not joining the list of INEM. Therefore require the bank to contract holders `trash ‘or temporary, but have to cover payrolls with the minimum clearance required to cover the payment of the bill. Salary of 3,000 euros at jobs requiring a mortgage guarantee for the institution to give the green light to the request of your loan.
A year and a half, coinciding with the crisis, the burden of documents to be submitted by bank guarantee has increased considerably. Now, banks want to know in detail their financial situation. Hence also the request of the guarantor payroll, income, movements in their current accounts in recent months, the latest tax returns and documents evidencing ownership of assets such as property deeds, certificates of paintings or other works art and jewelry.
The commitment of the guarantor
Whenever a person assumes the role of guarantor, takes a firm commitment to pay the mortgage. By law, we must respond as if the holder of the loan is involved in the event of default. The requirement not only relates to fees, but also to the interest generated by delay, legal costs, insurance related to loan and all costs associated with the mortgage holder fails to pay, whatever the reasons .
Courtesy, non garantor go in the first month you do not receive payment of the mortgage. Waiting three months. They believe, therefore, that a loan is not paid when their owners fail to pay three months straight. At that time, they begin the process to get the money through the guarantor. However, if he decides to do so and notify the entity at the time of signing the deed of loan, the bank may provide this information since the first month that is left to collect the mortgage.
At present, banks are asking for samples of such high creditworthiness of guarantors who make a study of its financial capacity, their income and expenses to determine whether it alone could deal with the shares of the loan. Banks and guarantors seeking to have enough income to be able to afford to pay the mortgage (in the hypothetical case where necessary) using about 40% of their monthly income (as if it were his own mortgaged). However, they are more lax with those who have assets, like other houses, cars, land or even artistic heritage that could compensate a possible debt, but your monthly income is low (even lower than those of the owners of the loan). This is because in case of default, by law, the entity may request the seizure of the mortgaged property, whether as a guarantor. Although it’s curious, the entity is not required to attach the subject of housing to meet the mortgage debt as a first option. You can start by taking a direct movable and immovable property of the guarantor. With several mortgage guarantors, the bank can even request the seizure of the assets of one, for the entire debt and not just its share of the split between debt holders and guarantors.
When serving a guarantor?
Usually, when a person makes the decision to approve a loan to another does not think that puts their property as a guarantee that the owner reimburse the bank debt. However, in lean times, like today, many foreclosure whose protagonists of guarantors. Hence it is not more aware of and understand in detail how this process. Before default, the entity is in contact with the owner of the loan. If you can not pay, the second step is to inform the guarantor and ask him to pay the full fees of the loan, the outstanding and, where appropriate, default interest that, on average, account for around 7% of the amounts that have not been paid. If the guarantor role without facing any problem, the entity will not require anything more, and mortgage payments may continue. In this situation, once the owner can resume payments, the guarantor no longer afford. For banks do not care who provides the money, but make sure the amounts committed. The guarantor to assume the debt, may require the amount paid to the debtor and officially become your creditor.
If, however, the entity that fails to address the guarantor payments, initiate a lawsuit. If the request is run, which is usual, the judge may request the seizure of the assets of both the holder of the loan as guarantor. A situation in which both must cope with its debt to tangible property, that is, the money from their checking accounts, payroll and pensions. Ultimately, it is appropriate to auction properties, both as a guarantor of the mortgage.
All written
The need to sign up for mortgages 40 years ago that the figure of the guarantor to become a financial slave for life. Hence, it is advisable to leave some clauses written into the mortgage so that it can happen. There are many cases of defaults on mortgages which are produced by the breakdown of marriages and to reach a situation of extreme disagreement and not knowing what to do with the floor. Although paradoxical, it may happen that a person is the guarantor of the house of his ex-son, after a ruinous divorce and painful for him. To avoid these situations, it should clarify its responsibilities, through a contract with any situations like this.
At the time of the writing of the loan, the guarantor is shown as such in the same and that is where the terms appear to want to impose a particular entity. At first, the bank or cash are not required to inform the guarantor of non-payment by the holders of the loan. However, if you ask to know the defaults explicitly, the entity would be obliged to report it. This clause should be seen as well in writing if both parties (and guarantor financial institution) to agree and decide to do so.
The last aspect to consider is that defaults in the mortgage-backed entities are not reported to them that has a mortgage in default. It is common that the first information report that they receive is a judicial notice.
Posted in Uncategorized
.