2. For banks: If personal debts can't be repaid, they can only be treated as bad debts.
3. For the society, it was published in the newspaper that a person was enforced by the court for not paying back the credit card debt.
what are the consequences of default
1. The consequences of default are wasted down payment: in this era of high housing prices, when buying a house with a loan, buyers often need to pay a certain down payment, ranging from hundreds of thousands to millions. Once you choose to default, you can never get the down payment back, which is a waste of the down payment.
2. As a result of the mortgage default, other house purchase expenses are also wasted: in addition to the down payment, when buying a house, buyers also need to pay some other house purchase expenses, such as agency fees and taxes on real estate transactions. Once you choose to cut off the supply, then these housing expenses will be equal to a hundred flowers.
3. The consequences of mortgage default will seriously affect the future loan consumption: mortgage default will often have a great impact on the personal credit information of buyers, and the most serious situation is to be blacklisted. Once you are blacklisted, your future loan consumption will be directly rejected, and even you can't fly!
4. The consequence of the mortgage cut-off is to auction your house at a low price: the final result of the mortgage cut-off is that your house will be forcibly repossessed by the court and auctioned at a low price. After paying off the bank loan, attorney fees, legal fees and other expenses, the rest of the auction money will belong to you.
5. You may lose money as a result of default: if the auction proceeds are not enough to pay off the remaining loan after your house is auctioned, you will continue to pay off the mortgage you owe. As a result, you will not only lose your house, but also owe money to the bank.