The risks of mortgage loan are: 1. Default risk. Once the loan defaults, the mortgaged house faces the risk of auction. According to the laws of our country, the legal risks of real estate necessary for life may not be auctioned, sold or paid off. According to Article 6 of the Provisions of the Supreme People's Court on Seizure, Seizure and Freezing of Property in Civil Execution, the people can seize the houses necessary for the life of the person subjected to execution and his family members, but they are not allowed to auction, sell off or pay off debts. If the debtor borrows money from the creditor with the real estate necessary for his life as collateral, once the debtor cannot repay it, it will be difficult for the creditor to realize his creditor's rights through judicial channels. 2. Liquidity risk. Liquidity risk refers to the risk that short-term deposits and long-term loans are difficult to realize, and liquidity is an important principle for banks to ensure asset quality. Today, liquidity risk is reflected in two aspects. First, at present, China's housing loans mainly come from provident fund and savings deposits. Savings deposits absorbed by banks belong to short-term deposits, generally only three to five years, while housing mortgage loans belong to long-term loans. 3. Business cycle risk. Business cycle risk refers to the risk caused by the periodic fluctuation of the overall level of the national economy. Compared with other industries, the real estate industry is more sensitive to the business cycle. 4. Interest rate risk. Interest rate risk refers to the risk brought by the change of interest rate level to the value of bank assets, which is determined by the capital structure of its short-term deposits and long-term loans. Fluctuations in interest rates, whether rising or falling, will bring losses to banks. If the interest rate rises, the interest rate of housing mortgage loans will also increase, which may increase the repayment pressure of borrowers. The higher the loan amount, the longer the loan term and the greater the impact, thus increasing the risk of default.
Relevant laws and regulations:
Article 394 of the Civil Code defines mortgage as the performance of secured debt. If the debtor or a third party mortgages the property to the creditor without transferring the possession of the property, the debtor fails to perform the due debt or the creditor has the right to receive priority compensation for the property.
The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.
What are the risks of mortgage loan?
The risks of mortgage loans include: 1, default risk. Once the loan defaults, the mortgaged house faces the risk of auction. 2. Liquidity risk. Liquidity risk refers to the risk that short-term funds and long-term loans are difficult to realize. 3. Business cycle risk. Business cycle risk refers to the risk caused by the periodic fluctuation of the overall level of the national economy. 4. Interest rate risk. Interest rate risk refers to the risk brought by the change of interest rate level to the value of bank assets. According to the relevant laws and regulations of our country, if the debtor or the third party mortgages the property to the creditor in order to guarantee the performance of the debt without transferring the possession of the property, the creditor has the right to be paid in priority for the property if the debtor fails to perform the due debt or realizes the mortgage according to the agreement of the parties.
legal ground
Article 394 of the Civil Code of People's Republic of China (PRC) defines mortgage as the performance of secured debt. If the debtor or a third party mortgages the property to the creditor without transferring the possession of the property, the debtor fails to perform the due debt or the creditor has the right to receive priority compensation for the property. The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.
What are the risks of mortgage loan?
The main risk of mortgage loan is that if the customer is unable to repay, he has been delaying repayment. Once he is run by the bank, if he is judged not to repay at that time, he is likely to be enforced. At that time, the house may be seized and auctioned, and then the proceeds from the auction will be used to pay off the debts.
In this regard, customers must pay attention to repayment on time and try to avoid overdue. In case it is overdue, and you are temporarily unable to repay it, you can't repay it for the time being. It is suggested to contact the bank's customer service to negotiate and try to apply for extending the repayment period and repay the arrears in installments.
What are the risks of mortgage loan?
1, default risk
Even if the mortgagee is a bank, there are default risks for the borrower to handle the real estate mortgage loan, including compulsory default and rational default. Compulsory breach of contract refers to the borrower's forced breach of contract due to his own reasons and insufficient ability to pay, which shows that the borrower is willing to repay, but unable to repay. Rational breach of contract refers to the borrower's active breach of contract. According to the equity theory, in a perfect capital market, the borrower can only make a decision whether to breach the contract by comparing the unique rights and interests in his house with the size of mortgage debt.
2. Liquidity risk
There are certain risks in real estate mortgage loan, including liquidity risk, which refers to the risk that short-term funds and long-term loans are difficult to realize. Nowadays, the liquidity risk of real estate mortgage loan is reflected in the fact that housing loans in China mainly come from provident fund and savings deposits. Savings deposits absorbed by banks belong to short-term deposits, generally only three to five years, while housing mortgage loans belong to long-term loans.
3. Business cycle risk
Economic cycle risk is relatively rare, which refers to the risk caused by periodic fluctuations in the overall level of the national economy. Compared with other industries, the real estate industry is more sensitive to the economic cycle.
4. Interest rate risk
As we all know, interest rate risk refers to the risk brought by the change of loan interest rate level to the value of bank assets. Interest rate risk is determined by the capital structure of its short-term deposit and long-term loan business, and the fluctuation of interest rate will bring losses to banks whether it rises or falls. If the interest rate rises, the interest rate of housing mortgage loans will also increase, which may increase the repayment pressure of borrowers. The higher the loan amount, the longer the loan term and the greater the impact, thus increasing the risk of default.
Mortgage risk
The risks of mortgage-to-mortgage loan are:
1, the process is too complicated. To apply for a mortgage loan, the borrower needs to have a company, and the company must be established for more than one year. If there is no company in this person's name, he will be transferred to another company. The process of the new company is very complicated, and the new company that may transfer ownership cannot meet the bank's audit standards.
2. The cost is relatively high. If the loan needs to be transferred to a new company, the transfer fee is not low, and the bookkeeping and address fees need to be paid every year. If the borrower doesn't know how to handle it, he has to find an intermediary to assist him, and he also needs to pay an intermediary fee.
3. Loan repayment risk. The repayment period of mortgage loan is about five years. If the policy of the midway bank changes, the borrower may be required to repay in advance, and if it is unable to repay, it will be overdue, which will have a great impact on personal credit.
What are the risks of mortgage loan?
Housing mortgage loan is a common loan method at present. As real estate, real estate has good stability, and the use value of real estate will not be affected when it is used as mortgage. But any economic behavior has certain risks. As the owner of the house, the biggest risk of mortgage loan lies in the risk that the bank will repossess the house if it cannot repay on time. As a creditor, the bank will inevitably implement collateral to realize its creditor's rights when the debtor can't repay the principal and interest on time, and as a debtor, it may face the risk of homelessness for itself and his family. Therefore, the lawyer would like to remind you that when using real estate as a mortgage loan, you should first choose a formal financial institution. Although some private loan companies lend money faster, the interest is higher, the means of debt collection are rough, and the procedures are not in line with the regulations. Secondly, it is necessary to reasonably evaluate the loan purpose and capital risk, especially the purpose of the only housing mortgage loan. If the use of funds is risky, it is easy to fail to repay, resulting in higher overdue fees; Finally, when the mortgaged property is auctioned, its price is relatively low, which will lead to the risk of asset shrinkage.