Whether we are talking about the purchase of credit, consolidation or restructuring, the purpose is the same: to pool several loans to reduce its monthly expenses and reduce its debt ratio. If the profile of the borrower does not provide sufficient guarantees (stability of activity and income, debt ratio greater than 33% after operation, health, etc.), the lending institution will require a guarantee. What solutions are available to you?
1. The repurchase of credit with mortgage
Only owners of real estate or first-time homebuyers can claim a loan buyback including a mortgage, because a guarantee will be requested by the bank. The mortgage is on the property and allows the bank to request the seizure of the property if you do not pay the monthly loan. The sale of the real estate will thus allow the lending institution to repay. In this case, we are talking about mortgage repurchase.
The mortgage guarantee of a candidate for the repurchase of credit will favor his request for extension over a longer duration the repayment (beyond 12 years), to drastically reduce his monthly payments. For a real estate buyer, the first mortgage will be referred to as a second mortgage if the borrower is already a homeowner.
2. The repurchase of credit with surety
The mortgage can be taken on the property of a loved one: we will talk about mortgage suretyship. But the surety can also simply hire a third party or surety, who will take the place of the borrower in the event of default. In the case of the use of a bonding agency, the latter is remunerated for a percentage of the amount of the grouped loans. The grouping of credit with bond generally requires a level of debt under 50% before operation.
3. The repurchase of credit with assignment on salary
The borrower can decide to have the repayment monthly payments made on his salary, by applying to the registry of the district court closest to his home. This proactive approach is a guarantee for a credit repurchase institution.