It will always be in your interest to inform your lender of your situation and to try to find solutions in consultation with him, because the consequences can be significant :
- Penalties are imposed on you. Your interest rate is revised upwards, according to what is provided for in your credit agreement.
- You are reported to the Central Individual Credit Register , at the National Bank of Belgium. This report will make your access to credit more difficult later.
- The guarantees that you have offered to your creditor can be triggered. The mortgage on your house, an assignment of your salary or other property belonging to you, the use of sureties (for example your parents) of your credit, according to the procedures provided for by law.
If your payment default persists, and the lender wishes to sell your house in order to be reimbursed, he must seize it. But before being able to seize it, he must attempt a conciliation before the judge of seizures , to which you are invited. It is only if this attempt at conciliation fails that he can continue the procedure of selling your house.
If only one mortgage applies to your property, the money from the sale will be used above all to cover your debt with your lender. Have you put your house as collateral for several loans? The credits that these mortgages cover are reimbursed according to their rank , ie the chronological order of their registration.
It is possible that the sale of your home will not fully cover your debts. In this case, you will have to continue to repay them by other means.
Example of distribution between creditors
