The warning from the bank before they seize your asset
If after the deadline is determined by the letter of reprimand but the debtor is still not willing to respond well, then the bank will immediately send the warning letters included in the category of stricter warning at the same time the bank will directly lower the credit status of debtors to be lower. Ignoring and panicking is definitely not a good way to stop foreclosure, so make sure you respond to the bank respectfully.
However, this letter will be made three times in three weeks with the first warning letter stipulated by the bank on the debtor containing the decline in the credit status into a form of substandard and being in special attention.
If within one week after the first warning letter is sent there is still no response from the debtor to repay its debt obligations, then the bank will send the second warning letter containing the decrease of the credit status of the debtor from the non-current credit to the doubtful credit.
If the second warning letter is also not honored by the debtor and the borrower does not show good faith, then the third warning letter will be sent and the contents are the status of the debtor to bad credit.
If all the letters have not been handled by the debtor, the bank will no longer provide any letter or warning and prefer a firm action in the form of confiscation of assets to be secured as credit guarantee.
Actually, the form of securing the asset, in this case, is not referred to as a foreclosure. It’s just that the asset is supervised by the bank where the building around the asset will be given the installation of a signpost to inform if the object will be used as collateral and should not be occupied again.
Hopefully answers to the question of when the bank will confiscate your assets. It can be a careful consideration for you before applying for an authorized loan as needed so that you do not experience bad credit.