by Melih Alsaç
Payment difficulties that may arise during the process of obtaining a mortgage loan are an important issue that affects both the bank and the borrower. In this case, it is important to examine in more detail how the process of loan repayment proceeds and what rights the bank has.
Loan Repayment Process:
When assessing a loan application, banks primarily examine the borrower's financial situation. The value of the house is only of secondary importance. Once the loan is approved, the borrower must maintain regular installment payments. However, there may be disruptions in payments due to unforeseen circumstances.
Bank's First Contact and Restructuring:
Banks do not have the right to immediately recall loans in case of delays in payments. In the first instance, the bank contacts its client and requests information about its financial situation. In the event of a temporary financial hardship, the borrower can ask the bank to restructure the terms of the loan.
Loan Recall Right:
However, if payment problems persist and there are two consecutive periods of non-payment of installments, the bank has the right to recall the loan completely. At this point, the borrower is contacted and alternative solutions such as selling the property may be considered.
In the process of repayment of the mortgage loan, the bank's rights are applied in a specific process. Although the bank does not have the right to seize the house, it can demand the sale of the real estate through the executive directorate. However, this may also be limited to the borrower's other assets. Therefore, it is important for borrowers to regularly review their financial situation and contact potential payment difficulties at an early stage.
