You receive a letter regarding your German mortgage. It demands not only an outstanding instalment, but also announces that, if payment is not made, the entire remaining debt will be called due. This distinction is crucial for the next decision. Have the letter professionally reviewed without delay and contact the confirmed responsible bank branch. The following notes do not replace individual legal advice and are not an instruction to exploit arrears.
First secure the actual status today
Keep the complete letter including access information. Lay out the contract, amendments, latest statements, payments made and prior agreements alongside it. Note the arrears, dates and next steps demanded as stated in the letter. A self-selected later date is not a reliable substitute for the professional review of a running deadline.
Also determine whether you already have a termination, a prior setting of a deadline or only a general payment reminder before you. The heading alone is not sufficient. The specific declaration and the course of events to date must be read together.
What the limited legal basis says
For the termination of a consumer loan to be repaid in instalments because of default on payment, § 498 BGB names several prerequisites. These include a default on at least two consecutive instalments, in whole or in part, and an unsuccessful two-week deadline with the remaining-debt threat described there. For secured consumer mortgage loans the default must reach at least 2,5 per cent of the loan nominal amount. A discussion about an agreed arrangement should be offered at the latest with the setting of the deadline. [BGB498]
That does not yet establish whether your loan and your letter fall exactly under this. Other grounds for termination, the applicable contractual law and concrete service or calculation of deadlines are not comprehensively examined here. No single percentage figure is therefore a personal authorisation not to pay.
Do not confuse the nominal amount with the current outstanding balance
In a purely fictitious case the loan nominal amount is 240.000 Euros. Of that, 2,5 per cent is mathematically 6.000 Euros. This comprehension test neither determines the actual arrears nor the result of a legal termination examination. In particular, it is not sufficient to compare any current account balance with this figure.
Secure which payments were due on which dates and which were actually posted. Transfers already made must be allocated to the correct contract. A personal collection of receipts does not yet prove that the entire arrear is thereby settled.
Link a realistic solution to the remaining budget
Prepare for the conversation which amount would actually be immediately available and which ongoing payment would be sustainable going forward. Clearly mark unconfirmed new income or assistance. A hoped-for refinancing is not yet coverage for the next deadline.
Ask for a comprehensible written version when concluding a concrete agreement and have its consequences explained. A verbal hope for leniency is not recorded as an already dispensed-with threat of termination. In the event of continuing hardship, suitable debt or legal advice should be involved urgently. The aim is a timely clarified course of action before confusing arrears become an even more difficult to bear total claim.