In the various measures that have followed one another since the beginning of the pandemic Covid-19 those relating to the suspension of the installments of mutual, an initiative that should also be extended throughout 2021 (it does not trigger automatically but is on request) and should also affect self-employed workers and freelancers, including artisans and traders, who have recorded a reduction in turnover due to the coronavirus emergency.
It should be remembered that suspended installments, in the long run, cause an increase in the interest to be paid; but what happens when the mortgage payment is not paid? what are you going to meet?
Let’s see what can happen
Late payment of installments
In cases where the delay in payment is actually a one-off, many credit institutions allow an amicable resolution of the matter (provided that the resolution times are very fast); when an installment is not paid within the terms of the scheduled deadlines, in the first place the default interest is applied, which has a higher rate than that of the conventional interest (ie agreed at the time of signing the loan).
In addition to this, in the event that the arrears continues, the bank could decide to report the name of the defaulting person in a credit information system (Sic) including the Criff (Financial intermediation risk center).
The Court of Cassation, with sentence no. 14382 of last May 25, established the mandatory notice to the debtor of the report in a Sic; this notice covers all consumer credit transactions including loans, financing and mortgages. Therefore, in the event that the credit institution with which the loan was contracted wants to report the defaulting payer to Criff, for example, it must first notify the person concerned informing him that, if the arrears are not remedied within the following 15 days , the name will be entered in the system.
When the report is triggered and what it entails
The report starts from the bank’s initiative when there is a delay of at least 30 days with respect to the expiry of the loan installment. In the event that the delay in payment occurs for the first time (reporting of first delay), the non-payment must concern at least 2 months or 2 consecutive installments.
Therefore, reporting to Criff can also occur due to small delays and can lead to great inconvenience.
What are the most serious consequences for the delay
The major problems begin when there is a default of more than 180 days, a period after which the procedures can begin with the risk of “losing” the house. After 18 months since the last time the installment was paid, in fact, the bank can put the house up for sale and in the event that the customer has signed the default clause (non-mandatory clause), the credit institution may decide to sell the property not necessarily at the judicial auction; the loan will thus be canceled even if the bank receives from the sale an amount lower than what it was supposed to collect.