Mortgage loan repurchase
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Glossary of credit redemption

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AT

ACCESS TO OWNERSHIP
Home ownership defined when an individual becomes a borrower following the acquisition of real estate by using the real estate loan. During the entire amortization period of the mortgage, the purchaser becomes the owner of the property, it is once the outstanding credit has successfully settled that he becomes the owner.
AFIB
AFIB is the French Association of Banking Intermediaries. The brokerage activity in credit restructuring is part of the IOB category.
AGIO
These are the bank charges when withdrawals or interest paid when you use your overdraft.
AMORTIZATION
It is planning the repayment of your credit over a fixed period.
ANNUITY
Periodic amount that the borrower agrees to pay to repay a loan
LOAN INSURANCE
It is a contract that takes care of the repayment of the credit in the event of death, disability, etc. It guarantees the bank to be reimbursed in full and it guarantees borrowers to be covered in the event of life contingencies. Thanks to loan insurance, the assets of the insured are preserved.
DEATH INVALIDITY INSURANCE
Death and disability insurance guarantees the coverage of the loan to an insured borrower in the event of the latter's disability or death.
NOTICE TO THIRD-PARTY HOLDER
It is a procedure similar to seizure which allows the Public Treasury to immediately apprehend all or part of the sums due to it, in respect of taxes, penalties and incidental costs, the recovery of which is guaranteed by the Treasury privilege. Thus, if you have not paid your taxes, the Public Treasury can issue a notice to third party holder on your bank accounts.

B

BANK BALANCE
The bank balance is a method used by banks and financial organizations to determine the profile of the borrower. The result of a bank balance makes it possible to define whether or not the debtor will be eligible for the acceptance of his file with the lender. A negative balance means that the borrower spends more than what he earns, while a positive balance means that the borrower's income is sufficient to meet all of his expenses. So if the various financial ratios are eligible for the bank's standard, then the credit consolidation will give it peace of mind in the management of its budget thanks to the cash generated with the reduction upstream of the charge of maturities.
BALES III
Adopted by the central banks of the us dollar zone on 12/09/2010, the Basel III agreements propose new prudential rules applicable to all banks. Banks must in particular respect a capital ratio.
BANK
The bank is an institution which allows monetary operations between the different economic agents. Banking institutions manage deposits from individuals, businesses and other institutions. Thanks to economic markets (monetary, financial, foreign exchange, etc.) deposits can be remunerated through interest. In addition, banks can grant loans, which allow economic agents to finance themselves by borrowing.
Bank One
In accordance with the Maastricht Treaty, its statutes were amended in 1993 to make it independent from public powers. Today Bank One is acting in concert with the European Central Bank to implement the monetary policy decided by the ECB.
TAX SITUATION STATEMENT
It is a document from the Public Treasury certifying the amount of a taxpayer's tax debt.

VS

REPAYMENT CAPACITY
We talk about repayment capacity when we want to define the amount that a borrower can borrow. The charge is a monthly payment which increases its debt ratio. If an individual takes out a loan when he has exceeded his repayment capacity, then he risks a situation of over-indebtedness.
REMAINING CAPITAL
The outstanding capital (CRD) is the amount that remains owed by the borrower. This amount is reimbursed by monthly installments which are made up on the one hand of interest and on the other hand of capital. In the event of early repayment, the lender may require early repayment indemnities (IRA) according to the terms of the contract.
BAIL
Act by which a person called surety undertakes with regard to a creditor to perform the obligation of his debtor in the event that the latter does not perform it himself. The surety can be a bank guarantee or insurance fund.
CERTIFICATE OF CONFORMITY
The certificate of conformity is an administrative document intended for the client or the owner, attesting that the work carried out during the construction of their building was carried out in accordance with the requirements stipulated in the building permit. The certificate of conformity is issued by the Mayor, the President of a delegated Public Planning Establishment or by the Prefect.
ASSIGNMENT ON SALARY
The payday assignment is a method of withdrawal that allows the lender to be paid directly from the client's salary. Thus the bank receives the payment of the monthly payment via the borrower's employer. It is a method of payment that decreases the risk of default for the debtor and the creditor. Financial organizations apply the transfer on salary for fragile profiles. For example in the case of a repurchase of credits, it will request the transfer for a tenant and conversely the owner will not be forced to do so. To be set up, the customer must go to court with his prior offer of credit consolidation, proof of income and proof of address. As soon as the bank is notified of the successful implementation of the transfer, the funds can be released.
DEPOSIT ACCOUNT
Account opened by an individual used for the daily management of his money. You can attach means of payment (credit card, checkbook, direct debits) to this account. It is also used for domiciling incoming flows (third party payments).
AERAS CONVENTION
Since 06/01/2007, the AERAS convention aims to find solutions adapted to the greatest number of people with a health problem in order to access credit financing.
SAVINGS ACCOUNT
The savings account allows individuals to capitalize without special conditions. It is therefore characterized by its flexibility of use. Indeed, economic agents can open several savings accounts (no limit in number). In addition, the savings account is not capped and there is no obligation to pay. However, the interest paid is subject to social security contributions (15.5% in 2013) and income tax.
COST OF CREDIT
This is the overall cost to be borne by the borrower. It includes the amount of interest over the entire term of the loan, but also all ancillary costs such as application fees, brokerage fees if a broker is called upon, or the cost of insurance or mortgage fees if it is a question of mortgage credit ...
CRD / KRD (Capital / Kapital outstanding)
It is the balance that remains owed on the original loan amount on a given date. This amount is necessary to be able to settle the creditors in the event of repurchase of loans.
DEBT
Right to demand a sum of money.
DEPRECIABLE CREDIT
Depreciable credit is financing that depreciates as its name suggests. Spread out by an amortization plan, expressed through a schedule, it has a start date and an end date according to specific and general conditions defined in the credit offer. Its operation is the opposite of revolving credit which is reconstituted as and when repayments are made.
RENEWABLE CREDIT
This is a type of consumer credit, granted by banks or financial institutions that distribute it through major brands or online on the web, but also in branch. The monthly payments may vary depending on its use. Also known as the money reserve, it is an adjustable rate credit with an interest rate that can be around 20%. Uncontrolled use of this type of loan can lead to excessive debt and lead to over-indebtedness.

D

FORFEITURE OF TERM
The forfeiture of the term applies when a debtor does not honor or more correctly his debt through the dates of the monthly payments to be paid. The lender expressly requests the total repayment of the principal remaining due to the borrower. The bank has no interest in requesting the forfeiture of the term, it prefers that its client honor the good repayment of its loan in order to collect its margin in its entirety (the loan interest), it pronounces the forfeiture of the term when his customer no longer faces his repayments to anticipate the end of the credit contract. In case of repurchase of credits if the forfeiture of the term has been pronounced on one of the loans taken over then the file will be refused because this leaves a risk of doubtful client.
OVERDRAFT
The authorized overdraft is the debit amount from the bank account that the bank authorizes its client, generally it is of the order of a salary. It provides working capital for the difficult months.
OVERDRAFT
Debtor situation. A bank overdraft corresponds to a debit balance vis-à-vis the banking establishment. The overdraft consists of making a purchase without having the funds immediately.
DISCOVERY NOT AUTHORIZED
The term unauthorized overdraft is used when a bank account is debited beyond its authorized limit. the customer must restore his financial situation as quickly as possible to restore the balance of his credit account.
REFLECTION PERIOD
This is the time that the customer has to think about the proposal that was made to him by the bank or the financial institution via the credit offer issued. Depending on the type of operation, the duration of the reflection delay varies. For real estate type credit, the reflection period is 10 days from receipt of the acceptance slip. For consumer credit, the customer has a period of 14 days from the acceptance of the credit offer.
DELEGATION OF ASSURANCE
Principle of covering customers with guarantees requested by the bank, via an insurer external to the bank.
DESINFLATION
Lower interest rate. Lower inflation allows lower interest rates. Slowing price increases, or disinflation, should not be confused with deflation, which is not desirable.
DEBT
Amount of money that a debtor must pay to his creditor.
DEFERRED
Period preceding the start of repayment of the principal of a loan, only the interest being due. If the deferral corresponds to the total duration of the loan, it is a credit in fine.

E

DEADLINE
Term. Future date, fixed by contract, for the repayment of a loan. Periodic repayment amount of a loan.
LOAN
When a bank or a financial institution is solicited by a natural person or a legal person in order to obtain cash, the person borrows from the bank, it is therefore a debt that the borrower must repay to his creditor. under the name of credit, it must be repaid in full. To avoid the risk of over-indebtedness, the debtor must always check his repayment capacity before committing.
OUTSTANDING CREDIT
The outstanding credit is the outstanding amount that the borrower must repay at a fixed date.
EURIBOR
Rate offered on the interbank market in us dollars, from one to twelve months, francized under the name of TIBEUR or European interbank rate. There are twelve EURIBORs staggered from one to twelve months. The three-month EURIBOR is the central market reference and serves as a support for a large number of operations and indexations. The calculation is done daily at 11 a.m. on the basis of indications provided by a panel of fifty-seven banks and particularly active on the interbank market of the us dollar. It corresponds to an arithmetic mean of the rates communicated after elimination of the extremes.
DEBT
Debt is the value of what is owed by a particular borrower. The indebtedness of individuals can lead to difficult financial situations for households, in other words situations of over-indebtedness.

F

FCC
It is a Bank One file which centralizes check payment incidents.
FICP
National file of bank incidents for the repayment of loans to individuals.

G

GUARANTEE
The guarantee serves to minimize the risk of default that may arise from the loan. For example, it can be in the form of transfer on salary or mortgage or joint surety ...
MORTGAGE GUARANTEE
This is an additional guarantee that the financier asks for when he considers that the risk of non-payment needs to be controlled. In repurchase of credit the mortgage registration applies for financing for which the amount of the transaction is high. The property is mortgaged up to the amount to be financed. Only people who own one or more properties can claim to benefit from a guaranteed loan buyback.

H

MORTGAGE
Guarantee taken on real estate by a creditor. A mortgage loan guarantees the repayment of a debt in the event of default by the debtor by conferring a privilege on the creditor, with an order of priority according to whether the mortgage is first, second or third.

I

REIMBURSEMENT ALLOWANCES
During the early repayment of a loan, the lender may require the borrower, in addition to the outstanding capital, an additional sum to compensate the latter for not having received all the interest on the loaned money.
INDIVISION
Property of several people other than husband and wife (except married couple under the regime of separation of property).
INSOLVENCY
We talk about insolvency when a person no longer has the capacity to pay their debts. Her purchasing power no longer allows her to make purchases, she becomes insolvent.
INTERMEDIATE IN BANKING OPERATIONS (IOB)
It is in a way the transmission belt between the customer who needs financing and a bank which can grant it. Its role is to defend the interests of the client. Mandated by several banking organizations specializing in credit redemption, he submits your file to negotiate the best credit consolidation offer at the moment.
PROHIBITION ALIENERING OR MORTGAGE
It is the prohibition to alienate or mortgage real estate during a donation. The donor prohibits the donee from being able to give the property as collateral. For a mortgage loan repurchase if the prohibition to alienate is existing, then the applicant will not be able to finalize the operation without the authorization of the donor (s).
BANKING PROHIBITION
When the customer of a bank or a financial institution no longer pays his debts, they can alert Bank One of the bad behavior of the debtor to register him in the file of bad payers of banking and credit incidents. Thus, the latter can no longer call on the credit service and certain payment services until the card has been removed.
LOAN INTEREST
It is the cost of money borrowed from a banking institution. It is the remuneration of the funder and it is expressed as a percentage. The borrower repays a monthly payment made up of a share of capital and a share of interest.

J

EXCESSIVE PLAYERS
Banks define as excessive gamblers anyone with a gambling addiction. This can lead to massive indebtedness of the individual if he spends all of his money playing games but does not pay off his credits.

L

NEIERTZ LAW
See over- indebtedness
SCRIVNER ACT
It is the law n ° 79-596 of July 13, 1979, which introduced a set of provisions in order to protect the consumer against the dangers of credit in the Consumer Code (articles L.312-1 and following) , and in particular the reflection periods.

M

HAND RAISED
Notarial deed allowing the effect of a guarantee (mortgage) to be destroyed. It can only be done after the agreement of the beneficiary of the guarantee, generally the bank.
BAD DEBT
It defines a situation which highlights difficulties for the debtor to repay his debts on time. However, the latter manages to do so despite the budgetary imbalance. Unlike over-indebtedness where the debtor can no longer meet his debts.
CAPITAL RESEARCH MANDATE
In credit consolidation, the capital search mandate is the contract between the broker and the client. It mentions the clauses of the mandate, those held by the principal and those of the agent. A banking intermediary cannot take steps in favor of a client if a mandate has not been signed upstream.

The monthly payment is the sum that the borrower repays to his lender to settle the borrowed money called "Credit".

NOT

Pledge
Contract by which a debtor delivers a piece of furniture to his creditor as security for the payment of the debt.
BARE PROPERTY
Dismemberment of the right of ownership which gives its holder the right to dispose of a thing, but does not confer on it either the use or the enjoyment which are reserved for the usufructuary.
NOTARY
The role of the notary is to prepare documents called notarial acts, which he formalizes for the various parties concerned. He is a ministerial officer, which allows him to give legal meaning to the documents he drafts for his clients. For example, during a mortgage loan consolidation, the notary drafts a loan deed or enters all the information related to the operation (identities of people, homes, professions, the object of the deed, the causes, etc. ) in order to authenticate the transaction and do what is right.

O

OAT
Equivalent Treasury bond. French State Fund, OATs at fixed rates are issued at ten, fifteen and thirty years.
LOAN OFFER
It is a contract by which a natural or legal person makes a sum of money available to another economic agent (company, household, etc.), for a fixed period under the condition of reimbursement and payment of interest. . On the loan offer, the conditions of the contract (general conditions and special conditions) are mentioned.
PREVIOUS CREDIT OFFER
This is the loan offer but entitled under another term. Also known as an offer of credit, it is the contract between the lender and the borrower. The bank is responsible for granting financing to the customer, it must check its solvency through an in-depth study of its financial situation to determine its debt ratio. Likewise, the debtor is responsible for the good repayment of the credit up to its balance.
CARD, CHECKBOARD, CREDIT OPPOSITION
There is opposition when an individual is opposed to leaving functional a means of payment such as a direct debit or a bank card but also a check. Usually a person files an opposition when they have lost or been the victim of a checkbook or credit card theft, so the means of payment are put out of service to prevent fraudsters from misusing them. Please note, it is illegal to oppose a direct debit for which a direct debit authorization has been signed by the debtor himself or a check issued because the payment has been made by the issuer.

Q

FAMILY QUOTIENT
Technique consisting of taking into account family responsibilities in order to reduce certain taxes, duties or contributions. For example, some municipalities reduce school canteen fees based on the family quotient. Mechanism for reducing the progressivity of income tax. It takes into account the importance of the taxpayer's family responsibilities. It is equal to the ratio of taxable income divided by the number of “shares” depending on the number of people making up the household.

R

DEBT RATIO BEFORE INTERVENTION
This is the household debt ratio before the loan buyback operation.
AFTER INTERVENTION DEBT RATIO
This is the household debt ratio after consolidation of loans. It can go up to 60%. It is always lower than the Debt Ratio before Intervention.
THE REST TO LIVE
This is the minimum monthly income that must remain per adult or per couple with or without children after payment of the monthly loan payment. The Rest à Vivre makes it possible to face the various monthly expenses except monthly credit payment.
RECOVERY
Collection of an amount due (tax by the tax authorities; a receivable by a factoring company, etc.)
MINIMUM INCOME
It is a minimum amount of income per adult or per couple with or without children that the bank requires to have in order to obtain financing.

S

SOULTE
In the event of divorce, one of the two spouses can buy back the other's share to keep the property. This practice is called "cash balance redemption".
OVER-DEBT
Impossibility for a natural person to meet, with his assets and his income, all his debts. The Neiertz law of December 31, 1989 put in place preventive measures and a friendly settlement or reorganization procedure in order to help families in difficulty.

T

TEG
Global effective rate. Synthetic information including all the costs associated with a loan, such as interest, insurance and administration fees.
FIXED RATE
It is established on the occasion of a loan and remains unchanged throughout the duration of the loan.
FLOATING RATE
It can be changed throughout the term depending on the base rate (the base rate is called EURIBOR or American Rata Interest Bank Offered).
INTEREST RATES
Fraction of the principal of a loan, paid by the borrower to his creditor to remunerate the opportunity cost of funds and risk taking over a given period. Unless otherwise indicated, the interest rate, fixed or variable, is expressed as an annual percentage.
NOMINAL RATE
Posted rate. This is in particular the percentage used for interest calculations.
WEAR RATE
Excessive interest rate above a certain legal ceiling, falling under the abuse of weakness that most civilizations have condemned morally and criminally at all times.

U

USUFRUCT
Right of enjoyment for life of property belonging to others. The usufruct results from the dismemberment of the property between bare owner and usufructuary. Enjoyment covers the right to use the property and the collection of the income it generates, but does not allow the alienation or degradation of the property. The fiscal and financial consequences of the property fall to the usufructuary, who must assume the possible taxation and maintenance costs.

V

MARKET VALUE
Value corresponding to a sale price.

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