Before you start a conversation about restructuring, you need to understand what a mortgage is and what it gives to an ordinary person. In a simple sense, this is a loan provided by a bank for the purchase of housing, in which the property remains in the property of the debtor, but is a pledge by the creditor, that is, if the debtor does not fulfill his obligations, the creditor can use the right to sell the collateral property in order to recover its losses. On the one hand, a mortgage makes it possible to acquire housing, but on the other hand, you need to understand that if you purchase an apartment in this way you must remain solvent for a long time. In today's realities, it’s quite difficult to maintain solvency for many reasons: job loss, lower wages or health problems. However, it doesn’t matter for the bank why the debtor cannot make the necessary payment. What if there was some force majeure and it is no longer possible to pay contributions in the same manner? Here, a service such as mortgage restructuring comes to the rescue.
What it is?
Currently, in practice, credit restructuring has not yet received widespread distribution. The thing is that such an exit is beneficial only to the borrower, on the part of the bank, the only benefit is that the debtor will pay, but not in the same way as before. Restructuring is a change in lending conditions, after which the borrower receives more favorable terms for payment of funds. This procedure does not ultimately reduce the size of the payment, and even more so does not remove his debt from the borrower, he is obliged to repay the loan further, but on more favorable terms.
Changes after the restructuring may be different, for example, you can change the order of repayment of debt or the size of the monthly payment. Sometimes banks provide the payer with the opportunity to repay only interest on the use of funds of a financial institution; in this case, payments on the principal debt are postponed for several months.
What needs to be done to achieve restructuring?
Restructuring problem mortgages is no easy task. But if you put enough effort, attention and time, you can improve the conditions for payment of your debts to the bank.
Mortgage Restructuring Terms
First of all, you need to prove to the financial institution whose services you used that you really need it. To do this, you need to collect a package of documents that will confirm your precarious financial situation. It’s best not to delay asking for help, otherwise, if it comes to late, it will negatively affect the bank’s decision to restructure your mortgage. If your relationship with a financial institution previously developed well, and your supporting documents satisfy it, then you can count on more favorable settlement conditions. But there are times when the bank does not meet the client's requirements, in this case there is another option - look for another financial institution that agrees to carry out the refinancing procedure for your loan.
Documents to be collected
Consider the standard package of documents that any bank asks for when restructuring. So, it includes:
The original or copy of the work book, certified by the employer.
Certificate of income from the last workplace for the last year.
If there is additional income, you must provide information about them.
Restructuring application form.
Passport.
Documents on the presence of debts on other loans, as well as documents confirming already fulfilled obligations.
The loan agreement concluded between the borrower and the financial institution that provided the mortgage loan.
Copy of the mortgage, which is certified by the organization that issued the mortgage.
If any, you must provide the following documents:
Copy of marriage certificate.
Documents on education.
Confirming poor health if restructuring was required for this reason.
Military ID or registration certificate.
Documents confirming the ownership of real estate or movable property.
If you use the services of a real estate agency, you will have to collect documents for them:
Documents establishing ownership of the property.
Real estate title insurance contract .
Documents of co-borrowers, if any.
Restructuring Forms
Restructuring can be performed in various ways:
Providing credit holidays - during this period the client is given the right not to repay the loan body, but to pay only accruing interest. The period for which such a right is granted - several months, is determined individually. The consequences of using this method of refinancing is the extension of the payment term.
Restructuring mortgages through refinancing is one of the best ways for a client. When using it, the debtor takes a loan from another bank in the amount of debt in the first and repays the mortgage with this money. The benefit is that most often the conditions of the second bank are better than when paying in the usual way, so the payer wins a good amount.
Extension of the loan term - with this method, the restructuring of a mortgage loan is to extend the period for repayment of funds, as a result of which the amount of the monthly payment is reduced.
Repayment ahead of schedule - everything is simple, the debtor returns only the funds that he took, without interest for using someone else's money, so you can save a lot.
Cancellation of interest and penalty in case of late payments. Such a restructuring of the mortgage is possible only if the client contacts the bank on time and provides comprehensive evidence of a difficult financial situation.
Change of loan currency - this opportunity is provided by some banks if there was a jump in the exchange rate.
Home Credit Bank
This financial institution has a special service - credit rehabilitation, you can use it even if you have already delayed payments. Anyone who wants to rehabilitate can apply for restructuring directly on the bank’s website. In addition to personal data, the application also indicates the reason for the appeal, why it is not possible to pay monthly payments in full on old terms. It also indicates the option of restructuring.
Sberbank
This bank offers 2 options that every client who is in a difficult financial situation can take advantage of: changing loan terms and credit holidays. The procedure is performed only with evidence of a quandary.
VTB
Mortgage restructuring at VTB is also possible. The bank provides such a service, but all conditions are discussed with the personal presence of the debtor and for each case individually. To provide the service, you must contact the bank branch with a statement on the restructuring of the mortgage loan.
OTP Bank
The service is valid not only for mortgages, but also for car loans and cash loans. Here, just as in Sberbank, they give the opportunity for restructuring by increasing the payment term or deferral of payments. Apply for benefits to the same bank in which you took a loan.
Remember, not all institutions indicate restructuring as an official service, but it is still possible. In any case, if you have any difficulties with repayments, contact the bank that served you when applying for a loan. As a rule, all of them are loyal to their customers, so you always have the opportunity in case of difficulty to get help. You need to give comprehensive information about the problem that you have and try to collect all the documentation to provide restructuring.