If as a result of failure to repay a mortgage loan the bank sold your debt to a debt management company – do not panic! This is an increasingly common practice and, for you, it may be the last resort to find a solution to this problem.
One of the most stressful moments in our financial life is taking out a mortgage loan to buy an apartment or a house. Such a liability usually entails a very large amount of money and a long time perspective. However, not only the awareness of a large sum of money may be overwhelming. We are also afraid of the problems we may be face with when our financial situation does not allow us to make our monthly payments of instalments. This may be the case e.g. after losing a job or long-term illness. If the debt has already arisen and the bank decided to assign it (i.e. sell it) to a debt management company, contrary to what one might expect, it may be quite good news!
Here are a few tips that will help you repay even a large debt.
1. Do not bury your head in the sand!
Avoiding contact with the company which took over your mortgage debt is not pleasant. Open the letter, pick up the phone or arrange an appointment with an adviser. After all, we all want to find a simple solution and help you get out of debt. Avoiding contact or refusing to pay will consequently lead the case to court and subsequently to the bailiff. For a debt management company it is the last resort since it entails additional costs and is not an amicable solution to the problem.
2.Agreement is the key to success
Debt collection companies such as KRUK are committed especially to reach an amicable agreement with debtors and finding a solution beneficial to both parties. These companies are open to dialogue and have an individual approach to their customers. What does it mean in practice? After a detailed discussion about your debt history and analysis of your financial situation, the most beneficial solution will be developed with your participation. Owing to this you will be sure that the repayment of your debt related to the mortgage loan has been covered with a good plan and is realistic. The solutions you will be offered by the company managing the mortgage debt may vary. Each case is examined individually. In exceptional cases, the creditor may agree to a settlement and split the debt into convenient instalment, which will enable you to keep your flat and gradually repay your debt. The debt management company may also offer to take over the flat and let you rent it, as well as other solutions. Therefore, it is worth to check your options as soon as possible.
3. New start
There are moments when it is worth to start everything anew. In such situations, selling your property is often the best solution. However, you should remember that finding a buyer and complying with formalities may be very time-consuming. And in the case of indebtedness, time plays a significant role. In such a situation, the creditor may be of help as he can offer you help in the sale of the property at an attractive price. This solution enables us to begin the next stage in life without debt. If the loan was taken out in francs, the situation get even more complicated and, therefore, it is necessary to talk to the new creditor the sooner.
4. Consistently pursue the objective
Remember that there are no hopeless situations. Yet it is important to agree on a good and realistic plan and to comply with it systematically and consistently. Do not wring your hands and do not give up. There is always a way out – even from the most difficult problems. Many people have already done it, also with the cooperation of such companies as KRUK and their pro-settlement approach.