Today, lending makes up half of all assets of any bank. The number of credit organizations is growing , and with them competition. Each bank puts forward various programs with attractive interest rates and conditions. Today, every second family has loan commitments - this is an integral part of modern life. There are various types of consumer loans: car loans, installments, mortgages.
Thanks to the mortgage, you can purchase real estate in both the primary and secondary markets. But interest on mortgages in Russia is very high and not everyone can afford it (from 10 to 16.5%), in contrast to Europe, where the average rate is only 4%. In addition to interest, a necessary condition of any bank is a down payment of 10%, a guarantee, a pledge of acquired or existing real estate and compulsory insurance. In case of non-payment and formation of a large debt, the bank may send a notice of termination of the contract. Of course, housing in our country is very expensive, and I don’t feel like renting and paying for someone else’s apartment - guided by this, some citizens, not measuring their incomes, burden themselves with debt obligations, and subsequently all their dreams fall apart like a matchbox.
The Russian legislation clearly spells out the entire process of issuing and conditions for repaying a mortgage, but, despite this, credit organizations are entitled to put forward their own requirements for borrowers. Before borrowing other people's money, the borrower needs to thoroughly familiarize himself with all the conditions (contract) very carefully, ask the employee to calculate the payment schedule, find out what commissions and penalties are charged for late payment, and also clarify the issue of possible early repayment (in some banks moratorium on early debt closure).
Reasons for termination of the contract
The termination of the loan agreement with the bank takes place in the event of the sale of mortgage real estate, the inability to deposit funds on the loan account. In this case, the bank must send a notice of termination to the borrower or notify him verbally. If one of the parties does not agree to terminate the contract, the other party has the right to apply to the court. Before signing the documents, the borrower must familiarize himself with the procedure for making payments and the ability to terminate the mortgage agreement, otherwise this will lead to large material losses of the borrower.
Also, termination of the mortgage agreement is carried out in case of violation of the obligations of one of the parties. If both parties find a compromise and, by mutual agreement, amend the agreement accordingly, then termination of the agreement will not be required and it will not lose its legal force. Bank bankruptcy is not the main reason for terminating the contract. With this outcome, the credit institution must send a notice of termination to the client. If this does not happen, the borrower can go to court, which will make the best decision - the legislation does not spell out clear rules on this issue.
Usually, a credit institution is the initiator of the termination, but there are cases when the borrower applied to the bank to terminate the contract. If you see that the bank violates the terms of the mortgage agreement or, for some reason that is not clear to you, sends a notice of termination of the agreement, it is better to seek help from a company dealing with such matters, which will be able to understand this difficult matter. Such companies specialize in loan restructuring and even redeem real estate held in collateral with the bank.
If the borrower is unable to repay the debt for an indefinite time, he needs to urgently inform the bank about this in order to avoid penalties. You may be offered several options to solve the problem: restructuring the mortgage or terminating the contract.