a) To re-finance the mortgage debt with the bank: This option means to negotiate with your bank a solution to continue with the mortgage payments, but try to modify the mortgage conditions, to make it easy to pay it. For example, extending the time of the period of the mortgage, or re-negotiating other conditions.
b) To negotiate with the bank to get the property as payment of the mortgage, cancelling the debt. It means that the bank would study the case, and, if they consider the value of the property is higher than the debt, they could accept to receive the property as payment of the mortgage, cancelling the debt. After this process, the bank would have the property, and you would cancel the total debt with the bank.
c) To sale the property in public auction: It means that the bank would sale the property in a public auction. The amount received for this auction would be used to pay the mortgage. The problem of this solution is that, if the amount obtained for the auction does not cover the amount due from the mortgage, then you would have to pay the difference. This solution is the worst of the different scenarios.
As legal company, we recommend to go on the solutions a) or b). The option to take one or the other solution would depend on your personal decision. It will be necessary from you to consider the following:
– If you would like to continue with the ownership of the property, but paying with better conditions the mortgage: This would be then to adopt option a).
– If you do not wish to continue with the ownership of the property, and you decide to give it to the bank as payment of the mortgage. This would be then to adopt option b).
We are in the position to act on your behalf in both cases.
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