But if the owner pays the house price and nothing matters, then you are out.
Redemption method 1: the owner redeems the building without any cost.
Redemption method 2: find a guarantee company to help pay the cost of redeeming the building. The handling fee is about 1% of the arrears, and less than 200,000 yuan is 2,000 yuan. This is the algorithm of Shenzhen.
Cash redemption means that the seller raises cash to redeem the building. There are also buyers who directly take cash to redeem the house for the seller. This method is risky for buyers and is not recommended.
In practice, there are two ways to redeem buildings through guarantee companies:
First, the owner borrows money from the bank to redeem the building through the guarantee company, pays 0.8%- 1% guarantee fee to the guarantee company, and pays short-term foreclosure interest to the bank. After the buyer's real estate license is issued, he goes to the bank to make a mortgage, which is usually called "second payment for foreclosure" in the industry.
Second, the buyer mortgages the bank through the guarantee company, and the bank pays the mortgage money to the seller to pay off the loan in advance, of which only the guarantee fee needs to be paid, but the buyer needs to pay the mortgage money in advance, which is usually called "a redemption" in the industry. Because the foreclosure period is relatively long, if the seller fails to sell or terminate the transaction due to unexpected reasons and the house cannot be transferred, the buyer can not buy the house and pay the house price for the owner on a monthly basis.
Financing foreclosure through financial companies
Sometimes, if the seller has bad credit such as multi-period default, and the general guarantee company is unwilling to redeem the house, then it is necessary to find some finance companies and financing companies to directly pay cash financing to redeem the house. At this time, the related expenses are higher than the ordinary guarantee fees. Similar to the way of cash redemption, except that the seller does not own cash, but borrows cash from the finance company and redeems the building.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.