Got a downsizing at work? Severely ill (or someone close to you seriously ill)? There was an unpleasant force majeure (fire, for example)? Or the hurricane inflation of a systemic crisis “devoured” half of the salary? For a bank borrower, even just one of the listed items with a high degree of probability will mean that the mortgage loan taken will be covered with a copper basin. But what if you have nothing to pay on the mortgage? First of all, you need to understand that the reason for failure in payments must be valid.
Reasons for encouraging customers to renegotiate mortgage terms
They have just been listed above:
- the dismissal and, consequently, the loss of basic monthly income. But the loss of work is considered a good reason only if the circumstances were really objective – reducing the company’s budget, closing the company, for health reasons. Dismissal at will or for violation of labor discipline is not considered a valid reason;
- health problems of the borrower or the people closest to him (husband / wife, mother / father, children, siblings, sisters, grandparents), requiring serious financial costs;
- mandatory – the birth of a child. The period of credit repayment here can reach up to 3 years;
- an emergency situation when unexpected serious material damage occurs (fire, flooding, house theft, car theft or its destruction in an accident);
- sharp negative changes in the general economic situation, which, by the way, has been observed since 2014. The trouble is that banks rarely consider this factor as a reason for indulgence for the client, saying: “Who is easy now? We must be able! As a rule, the bank agrees to be considered only if there is a currency mortgage and the exchange rate of this currency has changed dramatically – for example, the client took the mortgage in US dollars and pays for it with US dollars, but in 2015 the dollar became more expensive by almost 100 rubles% of the previous year’s figure (from about 34 rubles to 67 rubles per dollar).
What documents may be needed?
When the client understands: “I can not pay the mortgage, I do not have to,” first of all, we need to attend to obtaining the relevant papers, which will officially confirm the reason for the delay in the mortgage. Depending on the reason, this may include:
- employment record signed by the employer, indicating the circumstances of the termination of work;
- Help 2-NDFL of the tax service, which will show the fall in the level of customer income. But it makes sense to provide it when financial difficulties continue for several months;
- medical records in the hospital card of the borrower (or his relative), other extracts from doctors. It is desirable that all medications and therapies that the patient needs are clearly prescribed. Then the bank will be able to ascertain the high cost of treatment;
- child’s birth certificate or custody of a minor child. The bank may also request a statement on the amount of maternity capital;
- documentary evidence of force majeure and the expert opinion on the amount of damages. For example, when an apartment is flooded, the amount of damage is determined by the technician from the housing department.
Options for revising the conditions of the mortgage and solve the problem of payments
If there is nothing to pay the mortgage, it is always necessary to inform the bank about it as soon as possible. Hiding and arbitrarily reducing payments means violating the loan agreement unilaterally. What will give the bank the right to file an application to the court. When there is no money to pay the mortgage loan in the previous mode, there are at least a partial solution to the problem.
Restructuring. The bottom line is that the terms of the mortgage loan are revised.
- Option one – lowering the interest rate, which will reduce the amount of monthly contributions. But for a tangible reduction, it is necessary to mow down 4-5%, plus here the size of the loan itself plays a role (one percent from 1 million and one percent from 3 million rubles). The Agency for Housing Mortgage Lending (AHML), which today was renamed the Unified Institute for Housing Development (EIDC), can help. Participation in this state program is discussed in advance when you make a mortgage and is fixed in the contract. The activation of the EHRC program’s assistance when the client’s income officially falls by at least 30%, and the maximum amount of assistance in cash equivalent to 600 thousand rubles. But then, if the client is in this program, the bank does not have the right to refuse to restructure the mortgage.
- Option two – an increase in the mortgage period. It is clear that if you save all other conditions, you will have to pay less per month. For example, a ten-year mortgage can be stretched for 15 years. But there is a limit of 35 years – no longer can stretch. And if the term of the loan was initially higher (40 years or more), then the second option immediately disappears.
- The third option is to change the types of payments, ie, transition from annuity (fixed) payments to differential payments. What is the benefit? Mortgage of 1 million rubles at 15% per annum. With annuity fees, even if it remains to pay 100 thousand rubles before full cancellation, the monthly interest will still be 12,500 rubles, since the calculation will be carried out from the original amount of 1 million rubles. But with differentiated payments, the annual interest at the beginning of each new year is calculated from the remaining amount. If in January only 100 thousand rubles remain from the entire mortgage, then the annual interest will be only 15,000 rubles (15%), and in general a month – 1,250 rubles.
- Option four – credit holidays. Before the crisis, many banks, by agreement, allowed their customers in difficult situations to skip payments for a month or even two. That is, for a short time, the client did not pay anything at all, and the penalty interest was not charged. Now there are no concessions. But some banks still support services, when a short time (up to six months) you can only pay interest or a loan body. However, in the first case there will be a significant overpayment of interest, since the loan itself is not actually extinguished. And in the second, there is often confusion with interest calculation due to an unplanned change in the loan body.
- Option Five – write off part of the mortgage. The bank simply “forgives” some part of the loan, as if the client had initially taken a smaller mortgage. But beneficiaries make such concessions in mortgages extremely rarely.
Refinancing. Here, the client takes another loan on more favorable terms, ie one that is able to repay. After that, the funds received are allowed for partial or full leveling of the mortgage loan. Some banks include refinancing services in the field of mortgage lending. Then it is prescribed in the contract. Others are not. And the borrower has to go to another financial institution. But refinancing is a risky operation for a bank, because it is about issuing money to a client who already has nothing to pay the loan, the borrower has already shown some financial inconsistency. Consequently, the borrower will not give a green light everywhere. If you fail to participate in a special lending program, then refinancing is possible only within the framework of an independent consumer loan. But it is necessary to carefully study the conditions of this loan in order not to change the “awl on soap” and not to become a double debtor. It is best to take a consumer loan that will fully cover the balance of the mortgage.
Insurance. Some types of insurance companies make it the prerequisite for obtaining a mortgage – real estate insurance against physical damage, life insurance and health of the borrower. However, the client himself may issue some additional insurance. For example, obtaining insurance compensation for the loss of permanent income (unemployment insurance). About health has already been said. Especially large compensation can be obtained if the loss of working capacity is permanent. To implement the insurance contract, you will also have to collect a package of evidence and contact them in your insurance office. Large insurance really pay off most of the mortgage.
Sale of collateral. This option is not very suitable for everyone. After all, most mortgage holders just take a housing loan to buy a single housing. True, the bank may judicially withdraw from the debtor a pledged apartment / house, but this is a separate legal conversation. Now we are talking about those customers who, to secure a mortgage, offered to pledge some kind of real estate already owned by them. Alternatively, this property can be sold, and on the money to pay for a mortgage. But the property of the bank, the client will need his permission for the sale.
And the bank, most likely, will give it. The fact is that the organization, rather than finally withdrawing the property, would prefer the borrower to sell it and pay off the money received. There are several reasons for this: self-selling for a bank is a waste of time and money, the client can sell more expensively, transfer non-finance (real estate, transportation) to the assets of a financial institution in principle inconvenient and unprofitable . The borrower is able to sell the collateral without the official permission of the bank, but in this case, the receipt of money should be ahead of the state registration of real estate. To have time to pay off the mortgage, and then the encumbered will be removed from the real estate estate. If the client does not have time to pay off the mortgage to the state. registration, then in the state. the registry is a fact of encumbrance. And the deal is canceled. And the bank itself always has the right to cancel such a sale.
Consequences of unilateral breach of contract with the bank
It should be warned that simply ignoring the mortgage debt, given that we are talking about such a large loan as a mortgage, it is not recommended. In this case, the financial organization has the full right to sue, and the court will side with the creditor – this is guaranteed. Then the borrower is waiting for communication with bailiffs who:
- will seize any valuable property – a car, jewelry, digital and household appliances. And although officially only cars can be confiscated from movable property, since there is a certificate of ownership on it, the Russian borrower will surely not only lose him;
- describes all bank accounts, if any;
- arrest all plastic debtor cards;
- if the debtor has an official income, then it will be cut to the subsistence minimum to pay off the mortgage;
- They will have to live to settle, but they will have to live now.
And after all, you will have to pay not only the mortgage itself, but also penalty interest, which is charged if the borrower unilaterally violates the terms of the loan agreement without explanation. The article presents the main points regarding the issue of mortgage review. And the answers to the most frequently asked questions.