Ensure you choose the right person when it comes to dealing with how to stop foreclosure. When will Banks confiscate your assets and what are the procedures? The question that often arises from someone with a problem of bad credit is when the bank will confiscate your assets? The following are the procedure before the bank or money lender forecloses the borrower’s mortgaged property:
1. There is a notice of late payment of debt repayments
Before confiscating assets that have a certain amount of debt made, then the bank will first see the length of delay from credit repayments and also maturity. If one day the due date of payment
has exceeded the deadline but the debtor still has not paid it out, it will appear and exit the report on the late payment of someone who has not made a repayment for the month from the admin computer where the name of the debtor has been written.
2. Provide a warning letter
If after the deadline is determined by the letter of reprimand but the debtor is still not willing to respond well, then the bank will immediately send the SP or warning letters included in the category of stricter warning at the same time the bank will directly lower the credit status of debtors to be lower. However, this letter will be made three times in three weeks with the first SP stipulated by the bank on the debtor containing the decline in the credit status into a form of substandard and being in special attention.
3. Asset seizure
If all the letters have not been handled by the debtor, the bank will no longer provide any letter or warning and prefer a firm action in the form of confiscation of assets to be secured as credit guarantee. Actually, the form of securing the asset, in this case, is not referred to as a foreclosure. It’s just that the asset is supervised by the bank where the building around the asset will be given the installation of a signpost to inform if the object will be used as collateral and should not be occupied again.