Russian President Vladimir Putin signed a law that borrowers who are unable to pay off a mortgage loan will be able to independently sell the property pledged under the contract and pay off the bank. So far, such transactions have been associated with many difficulties.
It is not easy to sell mortgage apartments on your own today – in most cases, the bank itself does this through public auctions or auctions. The mortgage apartment is secured by the bank, and if problems with payments have begun, it has the right to collect the debt through the sale of housing.
The bank goes to court, and based on its decision, the mortgage apartment goes to auction. They sell it there, and the creditor closes the debt from the proceeds. If the money remains, it is returned to the borrower.
But it is not profitable for citizens. Banks go to court about six months after the start of the delay. From this moment on, 1-2 years pass before the sale of the apartment at auction. Throughout this period, fines and interest continue to accrue for missed payments. The amount is constantly growing, and by the time the apartment is sold, the sale price may no longer cover the current debt. Often, at the same time, apartments leave at the most unprofitable cost for the owner.
The bankers themselves were not happy with the current situation. “Creditors, in turn, do not always agree to the client selling collateral on their own, since they have no guarantee that the debt will be paid after the transaction,” the Central Bank, which was actively involved in the development of the document, said in a statement.
To remedy this situation, a new law was adopted, which sets out the rules for the sale of property and takes into account the interests of all parties. “The borrower will be able to initiate an independent sale of a mortgage apartment not only after the occurrence of late payments, but also at any time,” explained Vladimir Koshelev, First Deputy Chairman of the State Duma Committee on Construction and Housing and Communal Services.
How will the sale procedure take place? First, the borrower will sign an application with an obligation to fully repay the debt to the bank at the expense of the proceeds from the sale of real estate. It is forbidden to direct them to other purposes. The Bank, in turn, undertakes to respond to such an application within 10 working days from the date of receipt. It indicates the balance of the debt calculated on the expiration date of the independent sale of the property, and the minimum selling price equal to it. Here, managers are required to give precise explanations on the order of calculations.
All procedures take four months. During this time, it is necessary to register the transfer of ownership and complete repayment of the debt under the agreement with the bank. But if the credit institution does not object, the time allotted for resolving the formalities may be changed.
In which cases will it be impossible to sell mortgage housing on your own? If the borrower is undergoing pre-trial bankruptcy or the lender has already filed a claim for recovery, the sale will be prohibited. If the debtor has already submitted an application, but the apartment could not be sold within the allotted time, he may also be refused.
The new process of selling mortgage housing will start working on September 11, 2024.
Natalia Vladimirova.
Photo: LEGION-MEDIA
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