- Uncategorized

Revocation Real Estate Loan – Avoid Prepayment

In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid.

Have the cancellation policy of your credit agreement checked free of charge and without obligation:

In recent years, there have been several judgments on the right of withdrawal for real estate loans – even from the Federal Court. The reason for this is that between November 2002 and June 11, 2010 erroneous revocation policies for the contracts were issued by the banks and savings banks. Anyone wishing to apply for a revocation for their real estate loan has a good chance of getting a prepayment penalty. Here’s what you should be aware of.

In a nutshell: information on revoking the real estate loan for fast readers:

  • If credit and borrowers have received a faulty cancellation policy, you can claim their right of withdrawal for real estate loans and thus avoid the prepayment penalty and receive the capital back from the bank, which has earned them due to the interest.
  • Whether the revocation instruction is faulty with your real estate loan, you should have checked by a lawyer or at a consumer center.
  • Before submitting the revocation, the remaining debt should be determined in order to see in the next step how this can be repaid in a follow-up financing with the old bank. It is possible here a rescheduling – ie the inclusion of a loan at a new bank, but with current lower interest rates. This saves customers a lot of money.
  • The revocation for the real estate loan should be submitted only if the borrower can be sure of its follow-up financing. For this he can obtain a financing commitment from the new bank, which should be valid for four to six weeks if possible. For the settlement of the remaining debt at the old bank, the person concerned only has a period of 30 days.

Why insert a revocation in the real estate loan?

Why insert a revocation in the real estate loan?

This question is easy to answer, because there are roughly three options for revoking real estate loan contracts:

A revocation of the real estate loan, consumers can insert thanks to the right of withdrawal

  1. The borrower applies for a revocation of his real estate loan because he would receive a much cheaper interest rate on a rescheduling of his loan at another bank and so can save
  2. The borrower wants to break away from his contract and withdraw, because he can repay the residual debt in one fell swoop, for example, or he sold the property and thus got a few euros and now wants to terminate his loan agreement ahead of time
  3. Even after the expiration of the loan or loan agreement and even if prepayment already paid, consumers can still appeal for their real estate loan. Lawyers here have the experience that this is still possible three to five years after the end of the contract. After about seven years, however, there is little chance of it.

In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid.

Have the cancellation policy of your credit agreement checked free of charge and without obligation:

Incidentally, by law, the bank is only granted a fixed interest rate of ten years ; This means that thereafter a termination of the contract is possible even without a prepayment penalty.

Often the banks show resistance and do not let the customers out of the credit agreement, so it makes sense to turn a lawyer. This often leads to a court hearing. However, if it turns out that the bank was wrong, it must also pay the lawyer’s fees.

The Withdrawal Joker is in your hands

The Withdrawal Joker is in your hands

Now the question is, what is the reason? The reasons for this are ERROR exemplary Order cancellation in real estate loan contracts. The Federal Ministry of Justice actually has a sample protocol for such revocation instructions. In the period between 2002 and 2010, however, banks have used their own formulations that led to confusion and incomprehension among consumers. The courts have therefore declared 80 percent of the revocation at that time as ineffective.

This is now beneficial to debtors, since you can be the so-called withdrawal Joker play and save the prepayment penalty using a lawyer, this, if it was already paid, get back and even get paid by the bank, the income earned by the bank by the interest money.

The use of the cancellation joker can save customers a lot of money when they withdraw from the real estate loan

This means that even small changes of the banks on the pattern lead to the abolition of the model protection. Examples of this are the modification of the original structure of the cancellation policy laid down by the Federal Ministry of Justice or the wording “The period of grace does not begin until this instruction has been handed to you, but not before we have received the copy of the loan agreement signed by you. “. With this wording, customers can not determine when exactly the deadline will start to run because they do not know when the signed loan agreement will be received by the bank.

According to § 355 BGB (Civil Code), consumers have a withdrawal period of 14 days. But not in this case. Because in the case of faulty cancellation policy and deviation of the pattern, attorneys attract the cancellation joker, because by the circumstances mentioned above, a loan or borrower has a perpetual right of withdrawal.

But borrowers had to be quick because the law implementing the residential property Credit Directive (Refe), which entered scheduled on 03.21.2016 in force the cancellation Joker soon became history. It was granted a waiting period until June 2016, to which could still be revoked.

Leave a Reply

Your email address will not be published. Required fields are marked *