How not to remain homeless, making out a loan secured by an apartment
A large amount of cash is urgently needed, but banks refuse to approve a loan without collateral. It is possible to mortgage your apartment.
Subject of discussion : how to get a loan on the security of real estate in order not to be left without a roof over your head.
We estimate reliability of the creditor
In order to minimize the risks of losing your home, you should seriously consider choosing a bank. Organizations with a dubious reputation and an unknown brand will not worry about customer problems. Their main goal is to get their money back and make a profit at any cost.
If you have not previously been interested in credit topics and cannot independently select a suitable financial institution, refer to publicly available ratings of banks . They may differ slightly on different resources on the Web, but after analyzing several of them, you can easily make your own list of suitable organizations. In the first place in the recommendations, most likely, you will see Good Bank of the Russian Federation.
Also bother with checking the bank’s benchmarks for bank reliability :
- availability of necessary licenses (see on the website of the Central Bank of the Russian Federation in the directory);
- duration of existence in the market;
- legal proceedings with borrowers (if available);
- behavior in crisis situations or under unfavorable economic conditions in the past;
- customer reviews, overall reputation.
Checking the content of documents
In such an important transaction, the need for a very careful reading of the contract is evident. All points of the document should be clear and understandable explained to the borrower. If any conditions are interpreted in two ways and do not suit you, feel free to talk about this to the loan manager. It is best to study the provisions of the contract with an outside lawyer .
Particular attention should be paid to information on the transfer of rights to the mortgage , if such is covered in the documents. This paragraph may contain the “pitfalls” of the contract. It is important to understand that the bank has the right to sell the mortgage to a legal or physical person, like any security without the consent of the pledger. The client will simply be notified of the change of the mortgagee, will be informed of the new contact details and details for payments. Then you have to deal with a lender that you did not choose.
If the transaction is made with a non-bank organization or with a private person, then there is an additional risk of fraudulent activities . In the documents, you can even find a clause on the obligation to sell an apartment to the mortgagee for debt if there is a slight delay, bypassing going to court. Be careful!
Minimizing the risks of property loss through the courts
It will be much more difficult for the bank to evict you from an apartment if it is the only housing. Trying to avoid litigation, the lender will offer many solutions to financial problems, including credit holidays, contract renewal and other methods. If the borrower owns several apartments, then the bank is more likely to sue the collateral .
Note : do not try to re-register mortgage property for relatives or register them there in an effort to keep the deposit with you. According to paragraph 1 of Art. 446 Code of Civil Procedure of the Russian Federation such property is also subject to recovery under the terms of the transaction.
If you do not deceive the lender and carefully examine all the documents, then the risk of being left homeless is minimal. Be sure to analyze your financial capabilities in advance: whether you will be able to repay the debt in a timely manner.