The law, which gives borrowers the opportunity to independently sell their mortgaged property, will come into force in September. Olga Daineko, an expert on the Russian Ministry of Finance’s NIFI project “Myfinance.rf”, told Prime more about it.
Author:
https://rb.ru/author/ntihonov/
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In Russia, it is possible to carry out transactions for the sale of mortgaged housing; we have already used this scheme before, and the banks have given the go-ahead for such transactions.
“However, it was much more difficult for the debtors to reach an agreement with the bank,” Daineko said, adding that the bank could refuse and exercise its right to resolve the debt issue through the courts and sell the collateral at auction.
The new law now requires lenders to give the borrower a fairly long period to sell the property on their own – four months. If the parties do not mind, it can be extended. And obtaining such a service is quite simple – send an application to the bank. Coordination will take up to 10 business days. The lender will evaluate the collateral and make a decision on the minimum sale price. It is defined as the amount of debt remaining at the end of the specified sales period.
“The borrower will be able to sell the property at market price, actively participate in the transaction, which increases the chances of not only paying off the debt, but also receiving the rest of the proceeds from the sale, at least partially offsetting the costs already incurred to pay off the mortgage,” the specialist added.
During the sale, the bank does not have the right to foreclose on the mortgaged property. The money from the transaction will go into a special account under the control of the financial institution. In this way, each party will receive financial guarantees. However, not all borrowers will be eligible for such a sale. The ban has been introduced for those who are already in pre-trial bankruptcy proceedings, if the court has already initiated the process of seizure and sale of the property, or if the property is pledged to several mortgage creditors.
The day before, RB.RU reported on a new development in the field of mortgage lending in Russia. Alfa Bank now offers its clients mortgages with the option of reducing the rate depending on the key.
Author:
Nikolai Tikhonov
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
