Late mortgage payments due to COVID-19?Each case should be treated on a case-by-case basis

2022-06-01 0 By

Recently, many local residents have turned to the Internet for help, hoping to postpone the mortgage repayment deadline.The hashtag # Is it feasible to delay mortgage payments due to COVID-19 was also trending on Weibo.Some banks are willing to consider it, others are not, some banks are willing to consider it in some places, and others are not, according to Beijing Youth Daily on April 6.Can the impact of the epidemic constitute a waiver of liability for delaying loan repayment?Legally speaking, according to article 180 of China’s Civil Code, those who cannot perform their civil obligations due to force majeure shall not bear civil liability.What is force majeure?According to the Civil Code, force majeure is an unforeseeable, unavoidable and insurmountable objective situation.Generally speaking, natural disaster, war, disastrous accident accords with afore-mentioned condition.In light of the current situation of the epidemic, the “three must-haves” are still notable.In reality, it is possible that some industries and their employees may suffer from a temporary decrease in their income and fail to repay their loans on time.Therefore, if the home buyer is indeed unable to repay the loan on time due to the impact of the epidemic, the application for delay is in accordance with the law, and it is reasonable.But there is another side to the problem.A large number of mortgage defaults may not only affect the stability of individuals and families, but also impact the banking and real estate industry to a certain extent.Therefore, the lending bank will generally use the credit investigation system to track the homebuyers’ loan repayment situation in time and urge them to fulfill their obligations on time.Just as a person from a commercial bank said, a mortgage repayment delay of one day will affect the credit records, and a delay of three months will trigger a lawsuit.Under the dilemma, it is easy to understand that different banks have different attitudes towards loan extension applications.One side is the real difficulties of home buyers, the other side is huge credit investigation pressure, how to coordinate?We may need a clearer, pragmatic and responsible approach.For those who cannot repay the loan on time due to the epidemic, force majeure is a legal and legitimate exemption even if they file a lawsuit, not to mention being credited with credit.It should be noted that, regardless of specific circumstances and reasons, it is not only inconsistent with the principles of civil Code, but also counterproductive to urge timely repayment: the negative impact of bad credit investigation records on people’s economic “recovery” is obvious.Therefore, the way to solve the above “dilemma” is not to have different attitudes towards the same situation, but to be able to deal with the same situation in a specific way.According to the staff of a commercial bank, the bank currently has no provisions related to loan waiver due to the epidemic.As early as February 2020, the People’s Bank of China, the Ministry of Finance and the China Banking and Insurance Regulatory Commission issued a document stating that financial institutions can flexibly adjust repayment arrangements of housing mortgages and credit cards and reasonably postpone repayment deadlines for those who temporarily lose their sources of income due to the epidemic.To implement this spirit, feasible measures are as follows: timely promulgate implementation measures to make it clear that home buyers who are unable to repay their loans on time due to the impact of the epidemic should timely apply and provide proof;The bank shall examine such applications in a timely manner and treat them differently according to different circumstances.Only in this way can the requirements of the above five departments be earnestly implemented, and at the same time, the principles of the civil Code be actively implemented in the industry, so that a large number of disputes can be effectively alleviated before litigation.A common cause has always been the source of strength for the Chinese nation.Under the overall situation of the fight against COVID-19, whether it is home buyers, banks or relevant regulatory agencies, they need to actively assume their due obligations, give full play to the spirit of mutual assistance, and ensure that relevant issues are properly resolved within the rule of law.Source: Procuratorial Daily author: Chai Chunyuan Editor: Zhang Juan