“The situation of over-indebtedness is characterized by the obvious impossibility of facing all of its non-professional, payable and future debts. ” (Articles L. 711-1 and L. 712-2 of the Consumer Code) A situation with heavy consequences, which, fortunately, can find a favorable outcome, thanks to the real estate repurchase, on the condition of being well accompanied in this approach. Explanations.
What are the consequences of over-indebtedness?
In case of difficulties to repay your monthly payments of a credit or your current expenses (energy, water, rent …), it is immediately necessary to file an over-indebtedness file with the branch of the Bank of France of your department. Upon receipt, you are registered in the National Register of Individual Credit Reimbursement Incidents (FICP), available for consultation by banks.
Within a period that can not exceed 3 months, the commission status on the admissibility of your file: in the meantime, you must continue to pay your debts (charges, pensions, fines …), do not subscribe other credits and report any change of situation. If the file is out of order, the FICP file can be maintained for 3 years and you will have to find a solution for yourself.
If it is admissible, you will no longer have to repay your credits and pay your debts for the duration of the investigation of the file (maximum 2 years). After examination, the commission of over-indebtedness will direct you, either towards a rescheduling, postponement or partial cancellation of the debts, or towards a procedure of personal recovery (total cancellation of the debts).
Do you know the real estate?
The repurchase or repurchase option is a device of last resort, allowing you to transfer your property, for a period of 6 months to 5 years, while reserving the right to buy it back, when your financial difficulties are behind you.
This option is provided in Articles 1659 to 1673 of the Civil Code which provide that “the option of redemption is a pact whereby the seller reserves the right to take back the thing sold, subject to the return of the principal price and the payment of costs. “
This sale, with the option of redemption, is offered to all those who find themselves in a situation of over-indebtedness and who own their primary or secondary residence.
A win-win process little known, but presenting a nice alternative to situations of over-indebtedness. On the one hand, the seller can stay in his home, subject to the payment of compensation, and reserves the possibility to buy it back, once the transition period has passed. On the other hand, the investor, who buys the good and can not occupy it, transform it or sell it, guarantees his capital and receives a rent for a definite period.
The sale in repurchase takes place near a notary for the signature of a compromise of sale.
The notary is then responsible for paying the mortgage, pay your debts and keep the excess for the redemption if necessary of your home.
Then begins the transition period, during which you are no longer the owner of your property BUT you retain a precarious occupancy right of your home until the end of the contractually fixed period.
This duration must be chosen with relevance because it must allow you to reverse the financial situation in the time allotted and thus allow you to exercise your right of redemption.
If you can not redeem your property, the investor becomes the owner, and may, if he wishes, ask you to leave his home.
Why the use of a broker is relevant?
Beyond the support that can be provided by a credit specialist to a borrower in financial difficulty, the broker expert credit is a knowing that can enlighten you on the legal and technical terms of the sale in repurchase.
Your project is in good hands, because the experience of the broker and its network of partners (notaries, banks, accountants) will allow you to understand all the stages of this regulated device, to determine the adequate transition period, and especially not not risk giving your home definitively to a third party.