The mortgage dictionary is a section of the website that allows you to know in detail the definition of all the terms related to the contracting of a mortgage or mortgage product, one of the financial operations that must be thought about and analyzed the most because it involves a significant debt that will be paid over several years. The Notary Bosch-Bages of Barcelona wants with this page to facilitate the knowledge of the most important concepts related to this type of Notarial services related to mortgages.

TweetWhat is Early Expiration?

In real estate credit contracts granted to individuals, the repayment of the loan will be guaranteed by the mortgaged asset. This may be withdrawn from the property of the debtor, being seized by the creditor, when the situation of early expiration occurs.


Early maturity occurs when concur jointly the following requirements: 
  1. That the borrower is in default in the payment of a part of the principal or interest. 
  2. That the amount of the overdue and unsatisfied installments equals at least:
      1. If we meet within the first half of the loan: 
At 3% of the amount of the capital granted, or when the overdue and unsatisfied installments are equivalent to the non-payment of twelve monthly installments or a number of installments such that it supposes that the debtor has breached its obligation for a period equivalent to at least twelve months. 
      1. If we meet within the second half of the loan duration: 
At 7% of the amount of the capital granted. This requirement will be considered fulfilled when the overdue and unsatisfied installments are equivalent to the non-payment of fifteen monthly installments or a number of installments such that it supposes that the debtor has breached its obligation for a period equivalent to at least fifteen months. 
  1. That the lender has required the borrower to pay, granting him a period of at least one month for compliance and warning him that, if it is not attended, he will claim the full repayment owed on the loan. 

Consult BOE Law 5/2019, of March 15, regulating real estate credit contracts
Tags: Law, Mortgage.

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