Sooner or later, everyone has to borrow large amounts from the bank. In order to confirm its solvency, you need to either make a substantial down payment or bring reliable guarantors. If this is not possible, then one option remains - to take a loan secured by existing property. If the payer repays the loan on time or ahead of schedule, then the burden on the apartment or car is removed. If, however, a situation arises in which there is nothing to pay, then the bank may sell the property that is pledged.
In which cases do banks sell collateral
Alfa-Bank's collateral property may be represented by apartments, non-residential premises, cars and even shares. It takes into account everything that could potentially be put up for auction and generate income by which the bank compensates for the absence of payments on the loan.
Realization of collateral by Alfa-Bank is carried out only on condition that the borrower does not fulfill its obligations indicated in the loan agreement. This may be repeated non-payment of funds on the loan, as well as the lack of desire on the part of the borrower to resolve the conflict.
Debt restructuring
A borrower who has lost the ability to pay a loan should be the first to respond to the situation. He can go to the bank and write a statement stating the circumstances that have arisen (this could be loss of work, serious injury, death of one of his relatives and other good reasons). If the client up to this point had a good credit history, made payments on time and established himself as a bona fide borrower, then in this case Alfa-Bank's collateral may not be subject to litigation. Instead, the client receives an installment plan to pay off the debt. If he does not fulfill his obligations, then the trial will not be avoided.
Legal nuances of the sale of property
Consider the features of how collateral is sold. Alfa-Bank contacts the client and is considering the issue of debt refinancing. A financial institution is in no hurry to go to court, as this means additional costs for the process.
If the bank goes to court, then by decision of the court, the bailiffs initiate enforcement proceedings. It is important to know that if the premises are the only place of residence with the debtor, then it is impossible to foreclose such property.
Sale of property by agreement of the client with the bank
The procedure for the sale of Alfa-Bank’s collateral property provides for several scenarios, the first of which is the most loyal (in terms of the absence of the need to defend one’s interests in a lawsuit) is the sale of a pledged item by agreement between the parties.
In this case, the borrower is engaged in the sale of property, but the bank helps him in this. For example, an advertisement for the sale of property may be placed on the window of Alfa-Bank's collateral. This will help attract buyers, and the price in the case of an agreement between the borrower and the bank with such a sale will be much higher than if the property was sold without the participation of the debtor.
Transfer of the right to sold property
If Alfa-Bank’s collateral was sold within the framework of an agreement between a credit institution and a client, then the debt is repaid, the bank and the borrower, who could not make loan payments, draw up an act on the absence of mutual claims. The encumbrance is removed from the pledged item from Rosreestre, and the ownership right completely passes to the new owner.
Change of debtor
If a new client purchases an apartment on credit, then in fact the bank simply changes the debtor, and for the period of the mortgage loan the owner of the property will still be the bank.
Favorable installments for the purchase of collateral is possible when a new buyer makes a significant down payment. A credit history without delay is a prerequisite for such transactions.
Forced implementation
If it was not possible to agree, or the client had delays in payments and the upcoming joint sale transaction does not inspire confidence in the credit institution, then the matter is decided through the court.
If the court decides the case in favor of the bank, the bailiff service will be engaged in the auction procedure.
The initial price is determined as follows: an independent assessment of the sale of Alfa-Bank's collateral property is ordered. This price will be the starting point for bidding. As a rule, the lender pays and organizes the assessment process.
If the auction did not take place
If, as a result of the procedure, it was not possible to sell a car or an apartment, then the procedure is repeated according to the same scenario. The only difference in this case is the initial transaction price - it becomes lower by 15%.
If the second procedure did not take place, then the property is put up for auction again, and the price becomes even lower.
Thus, for a potential buyer, if he monitors the stages of tendering for an item of interest to him, a third or subsequent sale may be beneficial, because the price of the object will be much lower than that accepted on the market. And when the burden is removed, and the buyer has the full right to dispose of it, he can sell it at the market price and get a good profit.
By the way, many car buyers have successfully used such a scheme. They bid a used car at a low price and then sell it at market value.
Pros of buying confiscated goods at Alfa Bank
Alfa-Bank is a financial institution with a reliable reputation, therefore all transactions involving this financial institution are subject to multilevel verification. You can be sure of the purity of the transaction and the speed of execution of all necessary documents.
Why is it worth participating in tenders organized by the bank:
- You don’t have to spend money on an assessment, the bank will do it.
- Transaction cleanliness - the bank also takes care of legal issues.
- Quick execution of the contract.
- The price of collateral is usually much lower than the average market price.
How to protect yourself from risks
Despite the security of the transaction involving a financial institution, there is always a risk that the former debtor will go to court to challenge the transaction. The result of such a lawsuit is unpredictable, therefore, prior to the transaction, you can conclude a preliminary agreement with the former borrower, in accordance with which he refuses claims to the future owner of the property.
It will be prudent for the transaction participant to also rent two bank cells - for a credit institution and a seller. Access to funds pledged there in advance will be open only after registration of the right to the object of pledge with the justice authorities.
Such simple methods will protect the client from many risks and claims, will become an additional guarantee of the legal purity of the transaction.