The director of the Academy of Sciences “Targeted Program” Lyudmila Bilan (Novosibirsk) answers:
Typically, loan agreements do not provide for termination. They provide security, which is an apartment purchased with a mortgage. A mortgage loan is always issued only against collateral just in case the borrower cannot/does not want to repay.
Fines and penalties always arise when payment is late. It's in the contract.
If there were no guarantors, then this will not affect the relatives in any way. Spouses have joint and several liability; there is a strict connection here.
What to do if you can’t pay for your mortgage?
Mortgage holidays: how to get them, to whom they are given and according to what documents?
What to do:
- Contact the bank for loan restructuring. The bank will recalculate the payment downward.
- Give the apartment to the bank by signing a compensation agreement. This is a peaceful way.
- Put the apartment up for sale and sell it. Here the transaction algorithm depends on the creditor bank and the buyer’s payment method.
After six months of delay, the bank will file a lawsuit and win 100%. The apartment will belong to the bank. People will be evicted. While there is no court decision, you can start selling, pay off the bank, get money from the sale and peacefully part with the bank.
Is it possible not to participate in a mortgage for the military?
By a strange coincidence, it is impossible to refuse to participate in a military mortgage. The law simply does not provide for such a case. The only time you can opt out of the military housing program is if a service member retires, dies, or goes missing in action. In other cases, obtaining housing at a preferential mortgage rate is considered mandatory.
However, in some cases people are forced to give up such benefits. Military income does not allow you to buy your own apartment, but if you are determined not to participate in a mortgage, then prepare documents for a lawsuit in order to defend your own legal right to independently purchase housing and choose a method. As a rule, in the vast majority of cases, the court decides in favor of the plaintiff and approves the non-entry into the mortgage.
Lawyer Yulia Mikhailova answers:
I will answer point by point.
Can a borrower terminate a mortgage agreement due to, for example, a drop in income, without waiting for fines?
Theoretically, the borrower has such a right. Termination of the contract is possible either by agreement of the parties or in court. But it is almost impossible to implement this right in practice. The only ground on which the borrower could terminate the contract is a significant change in circumstances due to which the borrower cannot fulfill its obligations. It will be necessary to prove that the borrower could not have anticipated these circumstances at the time of execution of the contract, and also could not take measures to prevent or eliminate them, or that the measures taken were insufficient. But when concluding a mortgage agreement, banks offer insurance for both life and health, as well as loss of earnings. And by refusing such insurance, the borrower subsequently loses the right to refer to these reasons as a significant change in circumstances.
If the agreement does not specify guarantors, can the borrower's relatives suffer due to the borrower stopping payments?
No. The obligation to pay does not apply to persons not expressly specified in the agreement.
Are there procedures for terminating the mortgage agreement and the bank’s actions?
The procedures are prescribed in the mortgage agreement and are regulated by the Federal Law “On Mortgage (Pledge of Real Estate)” No. 1-2-FZF.
What to do if your income has decreased and you still have to pay your mortgage?
5 options for selling a mortgaged apartment
Will the bank sell an apartment given to the borrower with a mortgage (secured)? At what price - the market price or the one he deems necessary?
Most often, the need to sell mortgaged housing is established through the court. The court determines the initial cost of housing based on the results of an independent assessment. In this case, the sale price will be 80% of the appraised value. That is, the apartment will be put up for auction with a 20 percent discount. Further, depending on the results of the auction, the initial cost of housing can be reduced by another 15%.
Can the bank terminate the contract early?
Early termination of a loan agreement occurs if the borrower does not fulfill his/her debt obligations or violates another condition specified in the loan agreement.
Another significant condition may be a change of place of residence or a change of official place of work, of which the creditor was not notified in a timely manner. Note! The bank must notify the borrower in writing of the early termination of the agreement and indicate the reasons for such actions, referring to the article in the loan agreement for the requirement for early repayment of the loan debt.
The right to demand early repayment of accounts payable is regulated by the Federal Law “On Consumer Credit (Loan)” No. 353-FZ of December 21, 2013 and Art. 811 of the Civil Code of the Russian Federation, which states that if the borrower violated the terms of the lending agreement for more than 60 days out of 180, the creditor has the right to demand early repayment of accounts payable, taking into account the interest due, and terminate such an agreement ahead of schedule by notifying the debtor in writing. In this case, the debtor is given a period to repay the loan debt, which cannot exceed 10 days from the date of receipt of notification from the creditor. It is important to know that such a notification itself does not constitute unilateral termination of the contract by the bank within the meaning of clause 3 of Art. 450 Civil Code of the Russian Federation.
If the debtor does not fulfill the creditor’s demands within the prescribed period, the latter has the right to go to court for forced collection of the loan debt, taking into account fines, penalties and accrued interest. But measures for the forced collection of penalties and interest cannot be applied to the debtor if he made payments according to the latest payment schedule in compliance with the deadlines specified in the contract.
Thus, the law allows the bank to terminate the loan agreement ahead of schedule, but on the condition that the borrower’s financial situation has not worsened compared to the time when the agreement was concluded, but only for the specified reasons.
Private practicing lawyer Victoria Suvorova (Pyatigorsk) answers:
The answer to your question is very, very comprehensive. In short, since the apartment is pledged to the bank, it can sell it if you stop paying the loan.
Relatives of the defaulter will suffer only if they live in this apartment.
The procedures for terminating the contract are specified in your contract.
The bank has the right to sell such an apartment. This is done through the property sale procedure. The cost is usually equal to or close to market value.
How to terminate an agreement with a bank
To complete the contractual relationship with the bank, it is necessary to draw up an application and also submit documents justifying the termination.
Termination actions are carried out in a certain order.
Required documents
To terminate the loan agreement, the borrower submits a corresponding application to the bank. In its text, the borrower proposes to terminate the credit relationship and provides arguments for mutual agreement of the parties on this issue.
The application is accompanied by a copy of the loan agreement, documents confirming the circumstances under which the document should terminate (a lawyer’s opinion on an established violation of the borrower’s rights, a certificate of receipt of funds that will be enough for early repayment of the loan).
Drawing up an application
The bank has special forms that you can use. If it is not possible to visit a financial institution to fill out the form, fill out an application in any form.
It indicates the name of the credit institution, its contact information, details, as well as your personal information, address, and contact telephone number. In the text, indicate the date the agreement was drawn up, the document number, and the amount of the loan provided by the bank.
The following sets out the reasons why the contract may be terminated, please consider the proposal. At the end, be sure to indicate the date of preparation of the document and put a signature.
Important! The application can be filled out at the bank, taken personally to the financial institution, or sent by registered mail with notification.
Procedure
From the date of filing the application, the bank must give a response within thirty days. If a credit institution rejects the borrower’s proposal in accordance with Article 452 of the Civil Code of the Russian Federation, or does not provide an answer, the borrower has the right to go to court.
To do this, you need to draw up a statement of claim, which indicates:
- official court data;
- personal data of the plaintiff (contact telephone number, email, full name, residential address);
- information about the defendant;
- terms of the loan agreement and its details;
- the plaintiff’s demands (in particular, termination of the loan agreement);
- information on compliance with the pre-trial procedure for resolving the situation (the date when the application was sent to the bank, its copy);
- list of documents that are attached to the claim.
The statement of claim is accompanied by the following documents:
- A copy of the application.
- A copy of the loan agreement.
- Receipt confirming payment of the state duty.
- Documents on the basis of which the plaintiff puts forward his demands.
The next step is filing a prepared claim with the court at the place of registration of the defendant.
Director of the real estate agency “PROobmen” Ekaterina Nikitina answers:
In order to answer this question, you need to study the loan agreement that you signed. In general, if you are at the earliest stage of late payments (up to 60 days), then during this period it is easier to negotiate favorable terms with the bank. It is possible to discuss a partial deferment and reduce the payment amount for a short period. And the most important thing is to promptly involve a professional realtor in the sale of your apartment in order to sell it in a short time at a favorable price. If you delay the process and the bank takes the initiative into its own hands, then the bank will only respect its own interests.
Mortgage refinancing
Can I refinance my mortgage with another bank?
The bank terminated the loan agreement: what to do
When the lender terminates the loan agreement unilaterally, the borrower finds himself in a situation in which he is urgently obliged to repay the debt. However, if repayment of the loan is impossible due to a difficult financial situation and the deadlines provided by the creditor have passed, the debtor runs the risk of facing litigation. However, he should not stop interacting with the bank.
You can use the option of a settlement agreement, when both parties find a compromise and bring the agreement into line with the changed circumstances. For example, if a borrower has a loan debt, he should submit a written application to the bank for debt restructuring, which will reduce the debt burden and deal with financial difficulties. If the case goes to court, but the reasons why the bank terminated the agreement unilaterally are insignificant (one-time missed monthly payments, etc.), then the borrower must file a counterclaim about the disproportionate violation of the requirements imposed by the lender.
In court, the borrower must document the existence of circumstances in which he could not repay the loan debt. Usually, if there are significant, logically justified reasons, the court meets the borrower halfway and recognizes the termination of the loan agreement as unfounded.
If controversial situations arise or a violation of rights and legitimate interests occurs when terminating a loan agreement at the initiative of the bank, the borrower should contact a qualified lawyer.
Possible consequences for the debtor
For the borrower, the consequences of terminating the agreement with the bank occur if the termination of the document is initiated by the credit institution . This means that the borrower owes the bank money and does not fulfill his loan obligations. In this case, the bank can take the case to court, entrust communication with the debtor to collectors, assigning the debt to them, or revoke the collateral property from the debtor.
If the debtor makes contact, the banking institution may offer to resolve the issue out of court by refinancing, debt restructuring or providing a credit holiday.
