Sudden unemployment brings with it considerable financial difficulties. For property owners still repaying their mortgage, this may threaten their dream of owning their own home. How can you keep your apartment or house in the event of becoming unemployed? And when is a quick sale required?
If an employer dismisses an employee owing to insolvency or for other reasons, the latter must find a solution with their financing partner in good time. The sooner the mortgage holder contacts their bank, the quicker the financing can be adjusted to the situation. As a property expert, an estate agent can then additionally support the property owner.
Reduce, defer or suspend monthly repayments
Owners who have arranged in their mortgage agreement that monthly repayments can be suspended for a certain period will be able to get by financially for a few months. During this time, they can concentrate fully on finding new employment.
If no such contractual agreement is in place, they can check with their financing partner whether the agreed monthly repayment rate can be reduced. To this end, some agreements contain a financial corridor for reducing or increasing mortgage repayments for a certain period. However, the accruing interest payments are not affected by this.
If neither solution is available, owners can try to negotiate a payment deferment for a few months with their bank. This would mean a brief period in which no payments would need to be made. However, the financing partner would then charge deferment interest. Once the agreed deferment period lapses, mortgage repayments have to be resumed.
Selling your house or apartment
If you are unable to come to an agreement with your bank or if the period of the temporary financial arrangement has expired, the only solution remaining in most cases is the sale of your property. This should be done quickly and efficiently. After all, the proceeds of the sale must cover the mortgage repayment and fund the new home and house move.
This requires a professional valuation so that owners achieve a fair market price. Inexperienced sellers should not underestimate the process of selling a home. Mistakes often creep in that can impact the profit and the entire sales process. For example, if the creditworthiness of the potential buyer isn’t checked and the seller thereby fails to recognise that the buyer cannot afford the property, the sale may fall through. This can lead to further financial losses for the seller.
It also costs additional time and doesn’t improve the repayment problem with the bank. This is why experts recommend commissioning a local, professional estate agent. They will be familiar with all the necessary legal matters. In addition, the estate agent will be an experienced marketing and sales expert who can filter out potential buyers with real purchasing power from among the pool of interested parties.
Do you have to sell your property quickly? Then get in touch with us! We are happy to advise you.
Note
In this text, the generic masculine is used for better readability. Feminine and other gender identities are explicitly included to the extent necessary for the statement.
Legal note: This article does not constitute tax or legal advice in individual cases. Please have the facts of your specific individual case clarified by a lawyer and/or tax advisor.
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