Recently, it is very common for many people to borrow long-term in order to make purchases such as housing and cars. If the purchased house or vehicle needs to be sold and there is a mortgage application on the back of the loan debt, this raises the question of whether a bank loan can be transferred. Under these circumstances, banks look cold to the transfer of credit debt. But there may be different solutions to this problem. You can do this in a variety of ways, even if you don’t have the option to transfer your debt directly to another person.
Bank Credit Transfer
Banks do not approve of decisions such as transferring credit directly to someone else. However, you may be able to use a debt settlement loan through a bank other than the one where you used the loan. In this case, you can close the existing mortgage or auto loan debts and cancel the current mortgage and make the sale.
Accordingly, you also have the opportunity to pay the debt of the loan you have obtained with the sale and the debt closing loan. Another meaning of the loan that you withdraw from another bank is the transfer of debts from bank to bank. The biggest factor that will affect banks’ approval of loan closure loan will be your credit score. The disadvantageous aspect of debt transfer will be an increase in debt with a rate of 20-25% as it increases the interest rate.
Other Transactions That Can Be Applied In Debt Transfer Transactions
The person who will take over the loan must apply for a consumer loan with the same bank. He should make this application by stating that he wants to undertake your debt.
The person who will take over the debt may have the opportunity to close the debt by using credit with higher expenses and interests. However, as can be seen, this is not a complete transfer transaction and only allows the person to take over the loan at higher costs. Of course, in this transaction, research will be carried out regarding the credit score and income level of the person who will take over the debt.
Cancellation of Bank Credit
If you have used a loan from a bank, you have the chance to cancel this loan as it is covered by the Consumer Laws. Under the law, this cancellation must be made within 14 days. Therefore, if you want a loan withdrawn, you have to make a cancellation request before the 14-day period expires.
If you give up the loan within 14 days using this right, then you may be reimbursed for the loan file costs paid. However, if you have lost the right to process this cancellation application, then you will not be able to reimburse your loan-based interest or file expenses.
If the Bank Credit Is Not Paid
If you are not able to cancel your loan through transactions such as loan transfer from banks or cancellation processes, then you are responsible for paying the debt within the specified installments. Banks are entitled to legal sanctions if these loans are not paid on time. First, if you delay your credit debt, your credit score will decrease. Then, foreclosure cases can be realized with the legal follow-up process.