Nowadays mortgage or building savings loan represent common ways of financing of a new housing. However very often happens that people start having serious problems repaying these loans. This can end up with execution of the property. How to avoid these troubles?


The most common reason of inability to repay is the loss of employment

Reasons for problems with repaying can be various. Mostly they are: the loss of job, income reduction, illness or other cost increase. In any case you should not be ashamed of this situation and should not ignore it but otherwise.



Rule number one: Communicate! When you foresee your inability to manage the installments, immediately contact your bank and introduce them to your situation. The sooner the better.


The bank will consider you a partner and a person who seeks to solve the situation in time and they will approach you most helpfully. The bank prefers you repaying your debt than cashing your confiscated property.


Therefore if you approach the bank in time, they will offer you several solutions to the whole situation. After assessing your possibilities you will choose one solution you should exactly follow.



Each case is assessed individually

Each case is unique and the bank considers it to be so. Therefore it is hard to say what the bank will offer and under what conditions.


The amount of the debt yet to repay, payment behavior, current and future financial ratio, marital status, number of dependent people or health. These are all the aspects considered by the bank. The bank assesses your situation and offers a specific solution.


For example it can be a postponement of the installment, interest rate reduction, installment reduction or decomposition of the installment into a longer period.


Get insured for the future

It is necessary to mention that you can avoid the inability to repay also into the future. Without having any problems now, you can avoid them also in the future. Insure your inability to repay. This kind of insurance does not significantly influence your installments.