Loans Prevalence of bank forfeiture of loan collaterals

[Alexandoy]

When you take a loan with a real estate as the collateral that would mean it is a big loan. When I was working in the bank I was assigned to handle the Loans system. That’s when I learned that almost 500 loans in a year were delinquent will have the collateral forfeited. The big number baffled me like imagining that there are many irresponsible borrowers as to neglect the collateral.

A few houses away is a big structure of 3 stories with about 10 rooms that was loaned to a bank. The structure was not finished and the bank had forfeited it in favor of the loan of 11 million pesos ($220k). I am posting this topic so the readers can be warned that it is a big risk if you will mortgage a real estate asset. Think well before you take a bank loan.

 

[Augusta]

I have witness a thing like this and it was never funny for my uncle. There was nothing he could do at that point because he couldn’t pay back the loan. It is really a sad thing to go especially if that was your only asset. One needs to be very careful

 

[Kingsley]

This is now become a more common occurrence around here as most people who decides to access loans in most cases ends up defaulting. Although I know will always stand on the strong points that loans are very risky decision to take as one my eventually end up bankrupt or indebted eventually with nothing to fall back to, and I have seen people who claim that ever since they accessed a particular kind of loan things has suddenly turn upside down for them and their businesses, they go as far as saying things were better before they accessed the loans and this is outrighly a very wrong perception as it not true that things became bad rather spent roughly when they got the loan. There was this friend of mine who accesseda loan of about N200,000, he told the microfinance bank he needed the loan for business expansions so based on his previous antecedent he was granted the loan. Could you believe the guy spent over N175,000 for his personal needs and the rest was what he used up in the business as we can see he is already planning to fail because the money he invested will never be enough for the business.

 

[sincerem]

Sad one Indeed for victims who experienced such kind of scenario with the mortgage bank. That's why it is very much ideal to take a loan you can afford to repay without having the issues of losing more than you borrowed. I really can't use my estate investment to set as collateral for any mortgage loan. I wouldn't try that, I just pray I don't get entangled to that where I lose huge sum of money due to such kind of act of loaning big amount of money from the mortgage for whatever reason and given my hard earned real estate buildings to the bank due to agreement we had.