Mortgage Restructuring: Conditions and Documents

Before starting a conversation about restructuring, you need to understand what a mortgage is and what it gives an ordinary person. In a simple sense, this is a loan provided by the bank for the purchase of housing, in which the property remains in the property of the debtor, but is pledged to the creditor, that is, if the debtor does not fulfill its obligations, the creditor can use the right to sell collateral in order to recover its losses. On the one hand, the mortgage gives you the opportunity to acquire housing, but on the other hand, you need to understand that in the case of buying an apartment in this way, you must remain solvent for a long time. In today's realities it is difficult to maintain solvency due to many reasons: loss of work, reduction of wages or health problems. However, it is not important for the bank why the debtor can not make the necessary payment. How to be, if some kind of force majeure happened and there is no way to pay the installments in the same order? Here, such a service as mortgage restructuring comes to the rescue.

What it is?

At the moment, in practice, the restructuring of loans has not yet been properly disseminated. The thing is that such an exit is beneficial only for the borrower, the bank's benefit is only that the debtor will pay, but not as before. Restructuring is a change in the terms of the loan, after which the borrower receives more favorable terms of payment of funds. This procedure does not reduce the size of the payment in the long run and certainly does not remove the debt from the borrower, he is obliged to repay the loan even further, but on more favorable terms.

Changes after the restructuring can be different, for example, you can change the order of debt repayment or the amount of a monthly payment. Sometimes banks provide an opportunity for the payer to pay only interest on the use of monetary funds of a financial institution, payments on the principal debt in this case are postponed for several months.

What needs to be done to achieve restructuring?

Restructuring of a troubled mortgage is not an easy task. But if you put enough effort, attention and time, you can improve the conditions for paying your debts to the bank.

Conditions for restructuring the mortgage

First of all, you need to prove to the credit and financial organization whose services you used, that you really need it. To do this, you need to collect a package of documents that will confirm your difficult financial situation. It is best not to delay applying for help, otherwise, if it comes to delay, this will have a negative impact on the decision of the bank to restructure your mortgage. If your relationship with the financial institution has been developing well before, and your supporting documents will satisfy it, then you can rely on more favorable terms of payment. But there are cases when the bank does not meet the client, in which case there is another option - to look for another credit and financial institution that agrees to refinance your loan.

Documents to be collected

Let's consider a standard package of documents that any bank asks for restructuring. So, it includes:

• The original or a copy of the work record card, certified by the employer.

• A certificate of income from the last job for the last year.

• If there are additional revenues, you need to provide information about them.

• Questionnaire on the provision of restructuring.

• Passport.

• Documents on the existence of debts for other loans, as well as documents confirming the already fulfilled obligations.

• A loan agreement concluded between a borrower and a credit and financial institution that has provided a mortgage loan.

• A copy of the mortgage, which is certified by the organization that issued the mortgage.

If any, you must provide the following documents:

• A copy of the marriage certificate.

• Documents on the education received.

• Confirming poor health, if restructuring was required for this reason.

• A military ticket or a written certificate.

• Documents confirming the ownership of immovable or movable property.

If you use the services of a real estate agency, you will have to collect documents for them:

• Documents establishing the ownership of property.

• Contract of insurance of the title of real estate.

• Documents co-borrowers, if any.

Forms of restructuring

Restructuring can be performed in various ways:

• Granting a loan holiday - 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 is several months, determined individually. The consequences of using this method of refinancing are the extension of the repayment period.

• Restructuring mortgages through refinancing is one of the best ways for a client. When using it, the debtor takes a loan in another bank for the amount of debt in the first and repays the mortgage with that money. The benefit lies in the fact that most often the conditions of the second bank are better than when paying in the usual way, thus, the payer wins a good amount.

• Increase in the loan term - in this way, the restructuring of the mortgage loan is to extend the repayment period of the funds, as a result of which the monthly payment amount decreases.

• Repayment before the term - everything is simple here, the debtor returns only the funds that he took, without interest for using other people's money, so you can save a lot.

• Cancellation of penalties and fines in case of late payments. Such a mortgage restructuring is possible only if the client is on time to apply to the bank and provide exhaustive evidence of the emergence of a difficult financial situation.

• Change in the currency of the loan - this possibility is provided by some banks, if there was a jump in the exchange rate.

• There is also a state mortgage restructuring. In simple terms, this is a state aid in repaying a loan. The law on mortgage restructuring indicates that this can help payers repay the loan by 25-70%. Everything depends on the amount of the remaining debt.

"Home Credit Bank"

In this financial institution there is a special service - credit rehabilitation, you can use it, even if you are already late with payments. To apply for restructuring, everyone can be rehabilitated, directly on the bank's website. In the application, in addition to personal data, the reason for applying is also indicated, why it is not possible to pay monthly payments in full on the old conditions. Here, the option of restructuring is indicated.

Sberbank

This bank offers 2 options, which can be used by every client who has fallen into a difficult financial situation: changing the terms of lending and credit holidays. The procedure is performed only when providing evidence of a predicament.

VTB

Restructuring of a mortgage in VTB is also possible. The Bank provides such a service, but all conditions are discussed in the personal presence of the debtor and for each case individually. To provide the service it is necessary to apply to the bank branch with an application for restructuring the mortgage loan.

OTP Bank

The service is valid not only for mortgages, but also for car loans and cash loans. Here, as well as in the Savings Bank, it is possible to restructure through an increase in the payment term or deferral of payments. You should apply for benefits in the same bank in which you took out 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 payments, contact the bank that served you when you made the loan. As a rule, all of them are loyal to their customers, so you always have the opportunity in case of difficulties to get help. You need to give exhaustive information about the problem that you have, and try to collect all the documentation for the granting of restructuring.