Buying a house in the Philippines is a serious obligation. Even if you currently have a stable job, the uncertainty of the future might put you in a bad financial situation. Intentional or not, failing to keep up with your mortgage payments might cause you to lose your property.
Fortunately, you won’t lose the roof above your head immediately after you miss paying your monthly amortization. If you’ve already paid at least two years’ worth of your mortgage payments, here are the things you can do to make the best out of your situation.
Pay Unpaid Installments Without Additional Interest
You may update your account without paying for extra interest and losing your rights to your house. Lancaster New City reviews would tell you that you would have a grace period of one month for every year’s worth of installments.
However, you may only exercise this option once every five years of your contract’s life.
Sell the Property
If you no longer have the capacity to pay your loan, you may sell your ownership right to others and use the money to pay the lender. Or, you may also let another individual take over your mortgage. You may not be able to keep the house, but at least you can prevent a foreclosure from hurting your negative credit score.
Ask for a Refund
If they cancel your sales contract, you may receive cash surrender value equivalent to 50% of the total payments you have made. If you’ve paid over than five years’ worth of installments, that entitles you to receive an extra refund worth 5% of total payments made in 12 months.
All in all, the refund you might receive shouldn’t exceed 90% of the payments necessary to the returned.
But then again, not all options are always applicable to everyone because every situation is different. In case you default on your loan payments, it’s best to speak with the lender to negotiate. When all else fails, consult an attorney for legal advice to keep your situation from going worse to worst.