Acquiring a house in Mexico is one of the main goals that many set for themselves and it becomes a priority when starting family life, so one option for this is to resort to mortgage credit. However, after the Covid pandemic, those who already had a mortgage have found it difficult to meet the monthly payment for their home as the expenses generated by the pandemic or the lack of employment caused many to fail to meet their corresponding payments. According to the Bank of Mexico (Banxico), last year the overdue portfolio in mortgages reached just over 60 million pesos, however a year later it increased more than 12 million pesos, reflecting the financial difficulties that the Mexican families have had to cope. Although various support programs were applied for the payment of mortgages, the ravages of the financial crisis are barely visible, so it is important to evaluate the current credit situation and make better decisions to avoid losing equity. For that reason, Coldwell Banker Mexico, shares three situations that could happen and what to do in case of not being able to pay the mortgage: 1.- Being in default due to non-payment If there is a delay of more than three months, this type of arrears are already considered legal default (it implies a partial breach, which can cause more or less serious damage to the creditor). If you lost your job you can immediately check with the bank the unemployment insurance that is included in almost all mortgages in which you can cover up to twelve monthly payments of your credit while you find a new job. In the event that the credit is in the Infonavit, you can have an extension for the payment of your credit for 12 consecutive months or a maximum of 24 during the life of the credit, as long as the problem has been due to loss of employment. 2. Move the credit to another institution If you cannot continue paying the mortgage due to loss of employment or few resources, you may have a poor credit rating, so an alternative is to evaluate the credit situation and check if it is convenient to have the mortgage in the same institution or find another bank that offers better conditions in which an extension of the duration of the credit can be negotiated in exchange for the monthly payment being reduced. 3. Embargo To prevent the bank from taking legal action, it should not be more than 6 months late, so it must be very clear that the mortgage is borrowed money, and the bank has the right to recover it, through the seizure of the property. And if you add delinquent interest to the debt, the bottom line could be endless. Restructuring the debt is the option so it will be necessary to go to the bank or creditor entity to explain the situation and renegotiate the credit conditions, you must be honest and show them that you will have the economic capacity to resume payment and get up to date. It is important to act as soon as possible and thus you can avoid losing the house to the bank, identifying the financial situation of each one will be essential to make better decisions that do not put your assets at risk and preserve the balance of personal finances. *** Visit our site to learn more about our properties Also check out our blog for more articles Follow us on Facebook Instagram YouTube About Coldwell Banker México: Master real estate franchise in Mexico, focused on creating leaders in the real estate brokerage sector. With independent operation offices that support and advise the interested party in the purchase, sale or rental of properties in Mexico.