Credit defaults and consequences

The repercussions of the crisis of financial institutions and the economic slowdown are reflected not only in the limited availability of financing for the purchase of real estate by banks, but also in the increase in the cost of loans already granted in previous years. Unfortunately, this is also the reason why a large number of people who bought flats earlier, i.e. potential sellers, are currently having problems paying back their loans.

This is due to several reasons

This is due to several reasons

First of all, the vast majority of loans granted were in Swiss francs, whose currency exchange rate has increased significantly, and therefore the amount of the loan in USD has also increased significantly. Secondly, real estate prices have fallen and the difference between the sale price of an apartment and the amount of the loan to be repaid has sometimes increased by several dozen percent.

And thirdly, some borrowers who had a good financial standing and stable job before the crisis lost some of their income or even lost a good job. The combination of all these activities leads to the situation that some people simply cannot afford to pay off the mortgage. What then can they expect and what will be the procedures of the banks granting loans to recover their money?

Seeking agreement with the bank

Seeking agreement with the bank

Of course, the bank will not immediately go to our apartment and will not start execution immediately. In the first place, these will be reminders to the borrower reminding about unpaid installments to be paid. You should not be offended at the bank and pretend that you did not receive them. It is then necessary to go to the bank and try to find an amicable solution.

For example, the bank may propose reducing loan installments by extending the loan period or introducing a grace period of several months in repayment of capital. This is not a significant reduction in installments but always something. In a really difficult situation, the bank can agree to postpone the repayment of several loan installments, although this is by way of a big exception.

Ultimately, if the above solutions do not solve the problem, the bank may agree that the debtor sells his own apartment in order to repay his total debt, which protects the debtor against additional costs of bailiffs.

However, amicable solutions are not always possible because the bank and the borrower cannot find an agreement or the borrower even avoids contact with the bank. In this case, the bank will use the attachment we signed to the loan agreement, which is a declaration of submission to us by execution.

It specifies the amount of debt


For which the bank may issue a bank enforcement order and the date by which the bank may apply for an enforcement clause. Thanks to this, the bank will not have to refer the case to court and wait for the outcome of its proceedings in lengthy payment processes, but based on its books or other documents related to banking activities, it may issue its own documents called bank enforcement titles.

These titles, after providing them with court enforcement clauses, are already enforcement titles, which are the basis for the bailiff to initiate enforcement proceedings. The bank enforcement order significantly speeds up the enforcement process itself. The bank can execute in various ways. For example, from pay for work or from a pension. Can take a bank account with the debtor’s savings. He can commandeered his car, furniture or other valuable belongings. But above all, he will focus on recovering his money from the property that was credited.

There are, however, a few cases in which a bank cannot easily issue a bank enforcement order. In this case, the borrower must bring a normal payment process in which he presents evidence of the borrower’s failure to pay his debts.

However, each of these paths leads to the initiation of a bailiff’s execution and, as a result, the entire debt collection process is initiated, which in the light of the law also uses the means of state coercion and the effect is identical as in the case of the commencement of the procedure by means of a bank enforcement order.

Real estate mortgage use

Real estate mortgage use

Above all, however, the loan is secured by a mortgage on the real estate being credited and it is from this real estate that the bank will want to recover its money. This mortgage is entered in the fourth section of the land and mortgage register. It is a right in rem, i.e. regardless of whose property becomes the property, the creditor may assert his claims from it. Therefore, the bank does not own the property and does not become the owner of the property, as many people think, but it can enforce its claims.

The owner of such a property can sell and get rid of trouble in this way, however, no buyers who consciously make choices will buy a mortgaged property. Unless some of the proceeds from its sale will be used to pay off debts to the bank. The owner cannot, however, lead to a situation in which the value of the property would significantly decrease and the bank may demand that the borrower give up.

The land, building, residential or commercial premises may become the subject of a mortgage. The mortgage can be secured by any ownership right, perpetual usufruct right and any cooperative ownership right. Therefore, the bank can satisfy its claims from secured property, regardless of whose property it is.

What is Mortgage Bank Change?

Can not pay anymore, has to talk to the bank. With our free online account change service, changing an account is as easy and fast as shopping in an online store! Change the financing bank and save money: This has the advantage for you that you do not have to change the banks. So you want to change the bank?

Self-determined customers – this is the optimal customer base for the direct bank: many consumers are still shy to switch to a branch bank? The skeptics, who are trusted primarily in the local bank, is the home loan, the doubters entrust themselves primarily to their house banks. a quiet …..

Independent financing consulting & mortgage lending

Independent financing consulting & mortgage lending

As a rule, new banks value their real estate much more strongly than the previous bank. This can have a positive effect on your service offer. Irrespective of the interest rate, such an interest can also make sense if the predecessor bank has additional collateral, such as life insurance, in addition to the subsidized property. Again and again, we have the experience that the bank does not want to release them.

A new bank is often more benevolent if it has the right creditworthiness. Compare if this takeover offer is in line with the market. If you find a cheaper takeover offer compared to the market, you still need to determine the bank bills (notary and court fees for the transfer of land charges). It is best to prepare all the important documents for the new bank:

List of your income and expenses, assets and liabilities, documents for the project to be financed. Decide if you change or if you stay.

Easy account change service

For the change of your current account, we take over all detours. Individual problem solutions, expert support and customer-oriented support in all financial matters are our self-image. Since 1917 we have taken care of Catholicism, dioceses and parishes, Caritas, religious communities, church institutions, and their employees as “service providers for the Church”.

Building loan with the bank for the property management

Building loan with the bank for the property management

Mortgage lending through your in-house bank – you need to know this if you co-finance your own bank. When taking out a construction loan through your in-house bank, this often makes sense. The interest rate is sometimes better, sometimes worse than the average and it is so cheap that you might think, “My bank is the best thing that ever happened to me”.

Often, your bank will offer you or propose to change insurance policies, and other bank products will be sold by the bank because you feel compelled to do so. The counselor’s argument may have convinced you to apply for a loan from your bank, not an independent intermediary. or on the intranet.

Experience has shown that there are difficulties if you do not get along so well after the loan agreement. Money worries caused by illness, unemployment or family problems can, after a few years, create problems for the bank at which you have your finances. Because then it can happen that your bank first uses incoming funds to make an overdue installment before you pay for your maintenance.

So you want to change the bank?

So you want to change the bank?

Often the new bank, which is to take over the follow-up financing, retrospectively checks on the basis of annual financial statements of the loan agreement whether you have always made your payments on time. If that’s not the case, the new bank does not want you. But even your bank knows that and could use it and you can not do anything about it.

Therefore we advise you: Pay attention to a building loan at another bank, not at the bank, where you maintain your paycheck, preferably not at your place of residence, and if possible maintain your paychecks with different banks so that in case of an individual case the availability of cash and cash equivalents to subsistence level is not affected by the in-house bank.

The first indication of how quickly you depend on a bank is always when there is a demand to maintain payroll accounts as part of the financing. In addition, you become more independent because your commercial bank seeks to offer you other financing products because it knows exactly what is going on in your bank accounts, whether positive or negative.

Even a bank where you have only one loan and no salary account will not get any insight there. What kind of problem could it have with the bank, what do our experiences tell us? What you should look for when financing the construction with your bank, what difficulties can arise and what experience you have.

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