When you acquire a credit commitment with a financial institution it is necessary that you meet monthly payments, however there are times when it is difficult to keep up and falls behind in the payment of the monthly payments of the mortgage loan.
The consequences will be the following:
The bank starts charging default interest as established in the contract you signed at the beginning of the home loan, these are set according to the maximum rate and vary depending on the financial entity.
In accordance with the provisions of article 37 of the Consumer Law, if the default exceeds 20 days the bank will require payment of collection costs. If the debt goes from 0 to 10 Development Units, (UF) the collection will be equivalent to 9% of the amount owed. If it is between 10 and 50 UF it will be 6% and if it is 50 UF or more, it will be 3%.
The bank could seize and auction the property. This is established in the contract that you sign when you acquire the credit, so the bank is in the power to initiate actions whose purpose is to exercise the loan as collateral.
You will have a bad reputation in your credit history
If you do not have how to continue paying the debt, you can deliver the property as cancellation of it.
Alternatives to overcome late payment of mortgage loan monthly payments
Not everything is lost in the back payment of the mortgage loan monthly payments.
Unemployment insurance is an alternative to which you can go before you sign the credit. It will serve in case you are involuntarily unemployed. The insurer will be responsible for complying with the monthly payments established in the conditions of the plan you have hired.
There is also the possibility of a novation, which is when the credit is restructured or negotiated under other conditions that benefit both parties.