What is loan debt restructuring and is it worth agreeing to? State assistance in the restructuring of mortgage loans by the population The mortgage broker of the construction company "GIK" Nina Malysheva answers.
Restructuring of credit debt is a change in the current terms of the loan agreement concluded with the bank. This procedure is carried out only by the bank that issued the loan to the citizen.
Restructuring services are most often intended for citizens who are this moment do not have the financial ability to repay the debt in the same way. That is, for citizens who find themselves in a difficult situation, which has resulted in the inability to make monthly payments in full.
The essence of loan restructuring
Standard loan debt restructuring looks like an increase in the loan repayment period. In fact, a new loan agreement is concluded with the borrower and the old one is closed, or changes are made to the current payment schedule. Each bank can carry out this procedure using its own algorithms.
As a result of increasing the repayment period, the size of the monthly payment decreases, and the debt burden on the borrower decreases. The new deadline is selected in such a way that the payments are ultimately feasible for the citizen. As a result, the client does not fall into the problem category and does not spoil his .
As a result of increasing the term, the final overpayment increases proportionally, therefore Loan restructuring cannot be called beneficial for the client. But in any case, if necessary, it is worth carrying out so that the debt does not accumulate penalties and fines, and also for the benefit of your own credit history. In the future, when the debtor’s financial situation improves, there is always the opportunity to make full or partial early repayment of the debt in order to reduce the overpayment.
How and when to restructure loan debt?
To carry out restructuring, you should contact the creditor bank with your problem. At the bank's office you will be referred to a specialist who deals with problematic contracts. This could be the collection or security service of the bank; each institution determines which department deals with the restructuring of loan debts. Usually this department is located in the central office of the bank or in the largest branch in the locality. You can call the bank's hotline and find out who and when you can contact.
Another important question is whether when to contact the bank for debt restructuring. It is important to note here that this should be done in advance, before the fact of the delay in the monthly payment has yet occurred. In this case, there will be no fines or damaged credit history; the current terms of the loan agreement will simply be changed without harm to the borrower. So, if you understand that the moment is approaching when you will not be able to make your next monthly payment, do not waste time, but immediately contact the creditor bank with a request to restructure your credit debt.
Many borrowers mistakenly believe that they may encounter negativity when contacting the bank with their problem. But this is not true at all. Banks are also interested in having as few problematic loan agreements with overdue payments as possible. This fact affects their reputation in the eyes of the Central Bank, and this is extremely important for lending organizations.
If you already have current debt, then restructuring in such a situation will be more difficult. The agreement has already become problematic and is subject to penalties and fines. Not every bank will agree to meet the borrower halfway and restructure existing problem debt. So, be prepared for the fact that you will still have to pay all the fines and get into the payment schedule, solving your financial problems. But in any case, contact the bank with your problem, it is quite possible that they will still help you.
Most often, banks themselves offer to restructure debt under a problematic agreement, as last step before filing the case in court. But there is one nuance here - a new loan agreement will be drawn up for an amount that includes all fines and accrued interest for late payment. As a result, the amount borrowed on credit may increase significantly on paper, and interest will be charged on it again.
Be sure to think about whether you need restructuring in this case, your credit history is already damaged anyway, and the court will fix the debt, but the court decision itself can cancel a significant part of the fines and interest.
Mortgage loan restructuring
During the crisis, the issue of restructuring mortgage debt became particularly acute. The solvency of citizens has decreased, and the amount of mortgage payments constitutes a significant part of the budget of the borrower and his family. Banks are willing to accommodate mortgage borrowers halfway, understanding that the crisis affects the financial capabilities of citizens. If you have a problem paying off your mortgage debt, be sure to contact your bank. Remember that the property purchased under the contract is collateral; it is in your interests to negotiate with the bank to avoid seizure of the collateral.
In practice, most often the amount of payments is simply changed; some addition to the current loan agreement can be drawn up. But the contract itself will not be reissued. The fact is that when drawing up a new contract, you will need to again collect certificates and make an assessment of the housing. Therefore, this method will be simpler.
Restructuring of foreign currency loans
At the peak of the growth of the dollar against the ruble, this issue was very, very acute; many citizens found themselves in a real financial trap. The problem was solved at the federal level, the state took special measures to help borrowers who were trapped due to currency fluctuations. To a greater extent this affected foreign currency mortgage loans. The monthly payment is already not small, but with the growth of the currency it has become twice as much.
At the beginning of 2015, deputies submitted to the State Duma a draft federal law on the restructuring of ruble obligations under credit agreements and loan agreements in foreign currency. But at this point in time the law has not been adopted.
By the way, the Central Bank of Russia sent a letter of recommendation. We recommend you read it.
Banks are not particularly willing to restructure debt on foreign currency loans, so immediately be prepared for the fact that you may be refused. In reality, this will look like re-signing the contract and transferring the amount of debt from one currency to another. The conversion will be made at the bank rate on the day of the debt restructuring operation.
Consumer loan restructuring
This operation is carried out most often by banks. In this case, consumer loans include almost all credit products: credit cards, targeted and non-targeted cash loans, car loans and overdrafts. Most often, citizens turn to banks with such problematic products.
This procedure is not complicated at all, and banks willingly agree to it. In a crisis, when there are more and more problematic agreements, the restructuring of consumer loans is the only opportunity for banks not to acquire problematic loan agreements. Most of the transactions are consumer loans.
What documents will be needed for loan restructuring?
Ideally, the borrower must prove to the bank that he really is in a difficult financial situation and cannot make monthly payments in full. This can be any documents confirming your position. For example:
— sick leave(your own or loved ones);
— employment history with a notice of dismissal/downsizing;
- death certificate loved one;
— prescriptions for expensive medications needed by the borrower or his relatives;
— documents about loss or damage to real estate.
In general, these can be any documents that directly or indirectly indicate the impossibility of making loan payments at the moment. If you have such a document, then the chances of approval of debt restructuring increase significantly. But even if the application is not supported by any documents, it can still be considered with a positive outcome.
When visiting the bank, you will need to write an application for debt restructuring. A standard form will be provided to you by a bank employee dealing with this issue. Or you can fill out general benefits in advance (you can download them on our website). It is better to prepare two copies of the application: you will submit one to the bank, and on the other (your copy) the bank employee will mark the acceptance of the application for consideration. If refused, you can go to court by attaching your copy of the application.
Restructuring of loans in Russian banks
Greetings! According to the United Credit Bureau, by mid-2016, “overdue” retail loans in Russia reached 18.2% of the total loan portfolio. The indicator is growing at the highest rate for mortgage loans... Not only we, but also almost all countries of the former USSR: Ukraine, Belarus, Georgia and Azerbaijan found ourselves in a similar situation.
A crisis is an unpleasant thing in itself. What if you need to not only “tighten your belts,” but also pay the bank a serious amount? One way to make your life a little easier is to restructure your loan debt.
Restructuring is a change in the current terms of the loan agreement. The procedure can only be carried out by the bank that once issued the ill-fated loan to the borrower. If you took out a loan from Tinkoff Bank, then only Tinkoff can restructure it.
If your bank has such programs, at least clarify their conditions. This is much cheaper than solving the problem of overdue debt through the courts!
Banks offer several restructuring options. Important point! Any of them softens the monthly burden on the borrower. But the final overpayment on the mortgage will be higher in any case! If you don’t believe me, read the reviews of those who have ever taken this step.
Let us evaluate each restructuring option using a hypothetical example.
Increasing the loan term
You took out a mortgage for 20 years, and the bank offers to extend the time frame to 25 years. The monthly payment is reduced from $300 to $250.
What's the catch? The amount of the total overpayment for 25 years will be greater than for 20, because you probably have...
Deferment of payment of principal amount
For six months, the bank allows the borrower to pay only interest (without repaying the “body” of the loan). The monthly payment for six months is reduced from $300 to $150.
What's the catch? The loan balance will not decrease for six months. For six months, the borrower will make payments “idlely.” We multiply $150 by six and get $900. The final overpayment will increase by this amount.
Conversion of the loan into national currency
First of all, this option concerns foreign currency mortgages. The bank will recalculate the loan balance from dollars or euros into Russian rubles.
What's the catch? Firstly, the rate in rubles will be higher than in foreign currency. Secondly, the balance will be recalculated at an unfavorable rate for the borrower. Thirdly, the mortgage will have to be issued again (conclude a new loan and collateral agreement, collect income certificates, order an expert assessment of real estate). For the borrower, all this will result in a decent amount.
Restructuring of mortgage from the state
On April 20, 2015, Dmitry Medvedev signed Resolution No. 373 on the restructuring of mortgages for certain categories of borrowers. The law came into force in 2016. AHML and 80 financial organizations participate in the program. The maximum amount of state assistance cannot exceed 10% of the loan balance or 600,000 rubles.
Restructuring options:
- The subsidy amount is paid immediately, repaying part of the debt
- The loan term increases and the interest rate decreases to 12% per annum (for a year)
- Foreign currency mortgages are converted into national currency
Requirements for mortgage real estate:
- Borrower's only home
- The cost per square meter does not exceed the market average by more than 60%
- Area restrictions (for example, a two-room apartment - up to 65 sq.m.)
- Purchase of housing - no earlier than a year before restructuring. In other words, Law No. 373 applies only to “fresh” mortgages
Requirements for the borrower:
- Parents or guardians of minor children
- Disabled people or parents of disabled children
- Combat veterans.
In addition, borrowers must document that they are experiencing financial problems due to job loss or a decrease in income (30% or more).
There is another way to prove that it is, to put it mildly, difficult for you to pay your mortgage. Subtract your current monthly loan payment from your total household income. If there is less than two subsistence minimums left for each family member, you can apply for restructuring.
As you can see, not everyone is entitled to help from the state. You will have to pay the mortgage yourself if, for example, you took it out three years ago. Or the footage of the apartment exceeds the established minimum.
Restructuring from large banks
Sberbank of Russia
Sberbank has four restructuring options.
- Extension of deadline
- Grace period, within which a deferment in repayment of the “body” of the loan and/or accrued interest is possible
- Changing the scheduled payment date
- Change in loan currency (the balance of the debt in dollars is converted into rubles)
Reasons for restructuring:
- Compulsory military service in the army
- Loss of ability to work due to disability or illness
- Holiday to care for the child
- Loss of work and additional sources of income or increased expenses. But not out of the blue, but for a good reason. For example: treatment of immediate family, loss of property due to fire, death of a spouse
VTB Bank of Moscow
The conditions for VTB24/VTB/Bank of Moscow banks are identical. The loan restructuring program is offered only to bona fide borrowers.
Restructuring options for individuals:
- Extension of loan repayment period
The maximum “deferment” depends on the type of loan. For example, for FAST loans, consumer loans and car loan programs, the period cannot be increased by more than two years. For mortgage loans – within a maximum period of 30 years.
- Payment holidays
Payment holidays are a deferment of repayment of part of the monthly payment for a period of one month to one year. Relevant for mortgages or consumer loans. During the “vacation”, the borrower pays only the accrued interest (or half of the interest). The total loan term can be increased by the loan holiday period (or left the same).
- Changing the lending currency
VTB24 can convert a mortgage issued in foreign currency into rubles.
- Another procedure for repaying debt
Relevant for car loans, mortgages and consumer loans. A special loan servicing regime is proposed: first, the overdue amount on the “body” of the loan is repaid, then overdue fees and interest, then accrued fines and penalties.
- Reducing the level of mandatory monthly payment
The option is available only to holders. During the year, the minimum payment on a credit card is reduced from 10% to 5%.
- Refinancing of credit debt
VTB Bank of Moscow makes it possible to repay the balance of the debt without paying accrued fines.
What to do if the bank does not agree to restructuring?
If the bank does not compromise, you have two options:
- Refinance loan in another bank
- Take the bank to court (while continuing to pay at least something on the loan). As a rule, the court takes the side of the borrower, assigning him a minimum amount of monthly payments and exempting him from fines.
Remember! You will have to solve the problem with a problem loan in any case! Unfortunately, restructuring does not release you from loan obligations. It only temporarily makes life easier for the borrower until he corrects his financial situation.
And additional expenses for restructuring will always be less than fines and penalties for loan overdue!
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In conditions of economic instability, most borrowers are faced with the problem of fulfilling loan obligations. This especially affected consumers of foreign currency products. The expected law on the restructuring of foreign currency loans in 2015 was never adopted by the government. Despite this, banking institutions have the right to individually review and change the terms of the client’s existing loan - carry out restructuring.
Loan restructuring in 2015: main forms
The main goal of restructuring is to reduce the consumer's credit burden. To change the current terms of the loan, you should contact the lender with a corresponding application. It is necessary to take into account that the main reasons for restructuring are:
- significant deterioration financial situation borrower;
- obligatory presence of arrears in payment (delay/penalty/fines, etc.).
It should also be noted that the procedure can only be carried out at the financial institution that provided the loan (only if the appropriate product is available).
It is customary to distinguish the following possible options for changing the basic terms of the loan:
- Extension of the contract – increasing the term of the loan. The result is a reduction in the amount of monthly payments, but an increase in the amount of overpayments.
- Providing “loan holidays” - deferment of loan repayment/interest.
- Changing the order of payments (introduction of an individual payment schedule).
- Writing off fines/penalties.
- Reduced rate/size of monthly payments.
- Providing the borrower with the opportunity to pay for a foreign currency loan in ruble equivalent, calculated at the preferential (internal) bank rate.
- Change in the main loan currency (conversion).
Loan currency conversion as a way to restructure foreign currency loans in 2015
The procedure for transferring the loan currency is the registration of a new target loan (ruble) to cover the foreign currency. The loan is provided on the terms (term/rate/size, etc.) in force at the time of conclusion. With this type of restructuring, the borrower will have to go through the procedure of obtaining a new loan product. What you need:
- submit an application form;
- collect and provide a complete set of documentation (income/property/employment, etc.);
- prove solvency.
Restructuring of foreign currency mortgage loans in 2015
In April 2015, the Government of the Russian Federation adopted a resolution (No. 373 of April 20, 2015) on the basic conditions for providing assistance to borrowers who took out foreign currency housing loans (mortgages). The document indicates the categories of consumers who are entitled to assistance:
- families: young / with 2 or more children / with disabled children;
- disabled people;
- combat participants/veterans;
- borrowers who took advantage of subsidies to purchase housing with a mortgage (participants in programs to improve living conditions);
- employees of state/municipal structures, enterprises: city-forming / defense industry / academy of sciences.
A borrower can count on reviewing the terms of the mortgage under the program only if the total family income has decreased by more than 30% (over the last three months).
In addition, the defining criteria for the possibility of restructuring are indicated:
- the loan was issued before the end of 2014;
- outstanding loan payments (overdue) – from 30 to 120 days;
- absence of litigation/seizures regarding the mortgage.
- Before contacting a creditor with an application for restructuring, you need to decide on its form and conditions, which will allow you in the future. Please note that by signing amendments/additional agreement to the main agreement, the borrower guarantees that loan payments will be made without delay. Therefore, in the event of violations, it is unlikely to count on further leniency from the creditor and the provision of new restructuring options.
- If your lender does not have active restructuring offers, you should consider the option. Unlike the first, this procedure can be carried out at any credit institution. Many banking organizations have refinancing programs in their product line. Their terms may be significantly more favorable than those of an existing problem loan.
Every year, banks make mortgage lending more accessible, offering preferential conditions for certain categories of citizens and a simplified procedure for obtaining a loan. However, if your financial situation worsens, a home loan, even on the most favorable terms, can become an insurmountable problem. This is why many banks provide for mortgage restructuring with the help of the state; the program was supposed to end in 2018, but the government extended it in August, read about it below, but now let’s take a look at the essence of the problem.
From this article you will learn:
There is no money to pay off the mortgage: what to do?
If you are unable to repay the loan, you can contact the bank to restructure the debt. What is it and how can you go through this procedure?
Mortgage restructuring is a procedure for re-issuing a loan agreement in order to improve debt repayment conditions for the borrower. If a client has financial difficulties and is unable to regularly make payments in the amount specified in the agreement, the bank will accommodate and offer new lending conditions.
There is another way to solve the problem of repaying a mortgage loan - refinancing. Its goal is to enable the client to repay the debt using funds from another bank. The procedure is as follows: the borrower takes out a loan from another bank at a lower interest rate.
What is more profitable: mortgage restructuring or refinancing? Restructuring is possible only in the bank from which you took out a mortgage on the residential premises, and refinancing can be arranged in any bank that provides this service. The benefit of a particular procedure depends on the individual circumstances of the borrower: the amount of debt, the term of the contract, and credit history.
Consequences of mortgage debt
Late payments will sooner or later lead to the bank demanding payment. It may end up with your mortgage being seized on your apartment. The bank has the right to file a claim for late payments, and you will have to resolve the matter in court. Seizing an apartment for debts is an extreme measure that bank lawyers take. They resort to it, as a rule, only in the following cases:
- if the borrower ignores calls from the bank and bailiffs;
- if he does not agree to restructure the loan debt;
- if he does not repay the debt and does not make any attempts to reach a settlement agreement with the bank.
Losing an apartment due to debt is not the best prospect for a borrower. Therefore, restructuring of mortgage debt is one of the most optimal solutions to resolve the situation.
State-assisted restructuring
Due to the aggravation financial crisis in 2015, the state created a restructuring program that allows borrowers who find themselves in a difficult financial situation to write off part of the debt.
In April 2015, a government decree was adopted, according to which large families, military veterans, disabled people and guardians of incapacitated minor citizens can participate in the restructuring program. Under this program, borrowers can expect to have their mortgage principal written off. The procedure is handled by the Agency for the Restructuring of Mortgage Loans.
With the borrower assistance program developed by the government, it is possible to write off about 20% of the debt, but not more than 600 thousand rubles. And for large families, the state provides the opportunity to write off an amount of up to 1.5 million rubles.
The restructuring of mortgage debt with state support was valid until May 31, 2017. Writing off part of the debt with the support of the federal budget is currently impossible (at the time of writing), since the law has lost force and the allocated funds to help borrowers have run out.
Latest news: extension of state support
Latest news from August 2017
Following numerous requests from citizens, the program was extended - Dmitry Medvedev signed a corresponding resolution on August 11, 2017. But in the new edition, the conditions have become significantly stricter; now, in order to become a participant in the program, you must meet the following requirements:
- the period between the date of receipt of the mortgage and the date of the application for restructuring must be at least 12 months
- The increase in monthly payment was more than 30%
- The mortgaged home must be the borrower's only habitable home
To ensure the targeting of allocated assistance, a special interdepartmental commission will be created; its functions, among other things, will include making decisions in providing support to borrowers who, according to certain criteria, do not meet the terms of the program, but are in dire need of state assistance.
The commission also has the right to decide to increase the amount of allocated funds, depending on the circumstances, but not more than double the amount. Standard size support - 30% of the balance of the loan amount, but within 1.5 million rubles. As part of the financial support for the program, the government has allocated funds in the amount of 2 billion rubles.
Mortgage restructuring: step-by-step instructions
Despite the fact that the state support program for restructuring a housing mortgage loan has ceased to operate, borrowers may have the opportunity to re-issue the contract on new terms with the bank that issued the housing loan.
Step 1 - Write an application
The main purpose of the application is to notify the bank of the impossibility of paying money on the terms specified in the agreement and to justify its demand for loan restructuring. The application must provide the following information:
- Full name and contact details;
- Agreement number, date of conclusion, amount, interest rate and other important information specified in the agreement with the bank.
- The balance of the debt and the amount paid to the bank.
- Reasons why restructuring is necessary. This paragraph should describe in detail the current financial situation and the reasons that led to this.
- The terms under which you can repay the loan. You can specify the monthly payment amount that you can currently make towards the loan.
Step 2 - Collecting documents
Documents for restructuring a mortgage depend on the borrower's situation and the reasons why he cannot pay the loan. The standard list of papers for applying for loan restructuring looks like this:
- Passport.
- Certificate of income form 2NDFL from the place of work for the last 12 months.
- Certificate from the labor exchange (upon dismissal from work).
- Certificate from a medical institution (if the need to restructure the loan is related to illness or disability).
- A copy of the work book.
- Receipts for payments made.
- A copy of the loan agreement.
- Insurance agreement, guarantee agreement.
- A copy of the mortgage for the apartment.
- Other documents proving the impossibility of paying the debt on the original terms.
Additionally, the bank may request a marriage certificate, military ID, and documents confirming the ownership of valuable liquid property.
Step 3 - Submission of application and documents
Where should I go to restructure my mortgage? Contact the bank where the loan was issued. Submit an application and Required documents possible either by visiting a bank branch in person or through email. Consideration of the application lasts from 1 week to a month, so you should not delay submitting documents, since even more interest may accrue during the processing of the application for late payments.
Conditions for restructuring
Not all borrowers can take advantage of the mortgage loan restructuring program. Most banks provide the opportunity to renew the contract under the following circumstances in the client’s life:
- dismissal from work due to layoffs;
- receiving disability;
- death of a co-borrower;
- going on maternity leave;
- the opportunity to take advantage of the restructuring is also provided to large families;
- other circumstances beyond the control of the borrower that resulted in loss of solvency.
A borrower who was left unemployed due to his own fault (quit due to at will), is unlikely to be able to take advantage of the restructuring program. In this case, the bank may refuse due to the intentional actions of the borrower, which resulted in a loss of solvency.
In order for the bank to approve the application, it is necessary:
- documentary evidence of the reasons for the deterioration of the financial situation;
- no late payments and good credit history.
Please note that the procedure can be carried out no earlier than one year after signing the mortgage loan agreement.
Possible restructuring schemes
To understand more clearly what mortgage loan restructuring is and how it can solve the borrower’s financial problem, you need to understand its possible forms offered by banks. So, what can a borrower who applies for this procedure expect?
- Extension of the loan term. In this case, the bank reduces the monthly payment amount or interest by increasing the mortgage term. This scheme is good because the borrower can deposit small amounts, gradually repaying the debt. The downside is that the loan term extends over several years, and when the borrower’s solvency is restored, this form of restructuring may be more expensive.
- Reducing the monthly payment amount for a certain period of time. Typically, when choosing this form, banks allow the client to deposit smaller amounts over a period of 6 to 24 months. The use of this scheme is advisable if the borrower’s financial difficulties are temporary.
- Grace period for payment of the principal amount. This scheme involves the borrower paying only interest, without paying the principal. Such conditions are possible for a period of six months to a year.
- Credit holidays on interest payments. The bank provides the opportunity to repay only the principal debt, without interest, within 6-12 months.
- Individual loan repayment schedule. In this case, the financial institution, based on the client’s situation, draws up individual conditions for the repayment of debt and interest.
The borrower may insist on one of the possible schemes, but the final decision is made by the bank. Also, after reviewing the documents and application, a decision may be made on a combined form of restructuring, which will include several schemes for its implementation.
Advantages of restructuring for individuals are obvious: the borrower retains his living space, a positive credit history is maintained, and the mortgage is paid on more favorable terms. Reviews from borrowers who have undergone the procedure indicate that this is truly the most acceptable way out of the situation. The only caveat: the bank may not approve the application if it considers that the client’s financial situation allows him to repay the debt on the original terms.
Obtaining a mortgage loan is a salvation for many Russians in need of housing. The amounts required to purchase your own apartment or house are sometimes so large that buying real estate on our own difficult. Mortgage restructuring with the help of the state is a rational solution to the housing issue.
The state of crisis in which the country's economy has been for the last few years is affecting people's well-being. Mortgage repayment conditions, which were difficult even without economic difficulties, are becoming an unbearable burden for many families. In such cases, large banking organizations offer a mortgage restructuring service.
What is mortgage restructuring
Mortgage loan restructuring helps borrowers rid themselves of the debtor status in cases where it is difficult to repay the loan on their own. The terms of the restructuring provide for variability in monthly payment amounts and payment terms. This service can be used by all payers who meet the program conditions.
During the restructuring process, the parties revise the previously concluded loan agreement. The purpose of the revision is to make changes that are primarily beneficial to the borrower. When temporary financial difficulties are confirmed, the bank meets halfway, having secured an order from AHML. Steps credit organization, carried out to ensure that the borrower fulfills the loan conditions, may be as follows:
- Extension of the loan repayment period. This entails a reduction in the monthly payment. It is worth remembering that increasing the term entails an increase in the amount of interest paid, but sometimes this option is the only possible one.
- Reducing the interest rate. This is possible if the level of development of the credit institution and the economic situation of the country allow this, for example, when the Central Bank rate was reduced after the signing of the agreement. The amount of savings the borrower receives is not significant on a monthly basis, but the amount saved over the course of a year can exceed the amount of one payment.
- Changing the loan payment currency. Since the depreciation of the ruble is directly related to the financial situation of many borrowers, the bank may decide to pay in dollars.
- Changing the repayment schedule. The lender may offer an option to change the payment amount for a certain amount of time: for 6 months, for a year. This time is enough for the borrower’s financial situation to stabilize. It is possible to reduce the payment amount by up to 50 percent.
- Providing credit holidays. Average term- 6 months. During the holidays, the borrower pays only the principal debt; he is exempt from paying interest during this time. In some cases, a complete exemption from making payments for a specified period is possible.
Restructuring a residential mortgage loan is a smart decision that brings benefits to both parties to the transaction. The bank is guaranteed to continue to receive payments, the borrower maintains a “clean” credit history without being included in the list of debtors. The existence of such a service in the banking market justifies itself. It is important not to accumulate debts, but to promptly contact the AHML with a request for state support.
Role of the State
Borrowers in need of government assistance enter into a new mortgage agreement with a banking organization. This happens after a corresponding request is received from AHML, where the citizen must apply with the assistance of the bank. The agency's activities are regulated by legislative acts, since this organization is the federal operator of the project.
The last document signed by the Chairman of the Government of the Russian Federation Dmitry Medvedev is dated July 25, 2017 (Order of the Government of the Russian Federation dated July 25, 2017 No. 1579-r). The program provides for spending 2 billion rubles to help citizens who find themselves in difficult financial situations and having difficulties repaying their mortgage loans. The terms of the program are specified in detail in the Resolution dated April 20, 2015.
If the borrower meets the program requirements, then he can count on support from the state in the form of:
- interest rate reduction: maximum – 12%;
- writing off part of the principal debt on the mortgage (but not more than 200,000 rubles);
- suspension of payments for a certain period;
- non-collection of commissions related to the restructuring procedure;
- currency changes.
Participation in this program is completely free for payers. Property pledged to the bank must meet the following requirements:
- not be luxury housing;
- the area of a one-room apartment is no more than 45 square meters;
- area of a two-room apartment – no more than 65 square meters;
- The size of a three-room apartment is no more than 85 meters.
An apartment pledged to a lender bank, for example, Sberbank, is the borrower’s only home. If there are three or more children under 18 years of age in a family, the requirements for room space are not relevant.
After contacting AHML, the borrower who received a positive decision again contacts the bank, where the parties contractually choose the restructuring option. The new agreement will allow the citizen to fulfill his loan obligations in full, but with a short delay. The Housing Mortgage Lending Agency (AHML) will transfer funds to the bank in the amount of the concession made to the borrower.
Who gets help?
Not every citizen can become a participant in the state program. The agency imposes a number of requirements on borrowers. Categories of citizens who can apply for participation in the program:
- combat veterans;
- large families with at least one minor child;
- persons with disabilities;
- parents of disabled children or who are disabled themselves;
- citizens with at least one minor child and under the age of 35;
- citizens who are employees of authorities State power, local governments;
- citizens who are employees of state and municipal institutions, organizations of the military-industrial and scientific-production complexes.
All program participants must be citizens of the Russian Federation whose income is Lately became lower than confirmed at the time of receiving the mortgage. For each family member, the income must be less than the sum of two subsistence minimums. The property taken on credit must be located in Russia.
Procedure
Anyone who meets the conditions of the program and wants to restructure a mortgage loan must first find out whether a bank, for example, VTB-24, cooperates with AHML. There is no direct contact with the Agency. Step-by-step instruction next:
- Submitting a request to the bank for cooperation with AHML.
- If the answer is positive according to point 1, carefully read the terms of the program.
- Preparation of a package of documents requested by the Agency and required by the bank.
- Filling out an application on a form issued by the creditor bank.
- The reply is in process.
- If the answer to clause 5 is positive, a new loan agreement will be signed.
Required documents
If the answer is positive, you must provide a package of documents to the bank. It includes:
- application form;
- passports of all family members and copies;
- Marriage certificate;
- decision of the guardianship authorities on adoption;
- Veteran's ID (if available);
- documents confirming the borrower's disability;
- certificate of family composition;
- a copy of the work book;
- certificate of income (2 – personal income tax);
- certificate of registration with the employment service.
- What documents should an individual entrepreneur have?
- Accounting for individual entrepreneurs - rules and features of independent reporting under different tax regimes Primary documentation for individual entrepreneurs
- Accounting for individual entrepreneurs: features of accounting in individual entrepreneurs?
- How to privatize an apartment, everything about privatization List of documents for privatization of an apartment