Mortgage credit lending. In which cases does the bank send a notice of termination of the contract

To date, lending is half of all the assets of any bank. The number of credit organizations is growing , and with them, and competition. Each bank puts forward various programs with attractive interest rates and conditions. Today every second family has credit obligations - it is an integral part of modern life. There are various types of consumer loans: car loans, goods in installments, mortgages.

Thanks to a mortgage, you can buy real estate, both in the primary and secondary markets. But interest on mortgages in Russia is very high and not everyone can afford (10 to 16.5%), unlike Europe, where the average rate is only 4%. In addition to the interest necessary condition of any bank is an initial contribution of 10%, surety, pledge of purchased or available real estate and compulsory insurance. In case of non-payment and formation of large debts, the bank can send a notice of termination of the contract. Of course, housing in our country is very expensive, and all my life I do not want to rent and pay for someone else's apartment. Being guided by this, some citizens do not burden themselves with their debts, and then all their dreams collapse like a matchbox.

In the Russian legislation, the whole process of issuing and terms of mortgage repayment is clearly prescribed, but, in spite of this, credit organizations have the right to put forward their own requirements to borrowers. Before borrowing other people's money, the borrower must fully read all the conditions (agreement) very carefully, ask the employee to calculate the payment schedule, find out what fees and penalties are levied on late payment, and clarify the issue of possible early repayment (in some banks it is Moratorium on early closure of debt).

Reasons for termination of the contract

Termination of a loan agreement with a bank takes place in the case of the sale of a mortgage property, the inability to make money on a loan account. In this case, the bank must send a notice of termination of the contract to the borrower or warn him orally. If one of the parties disagrees to terminate the contract, the other party has the right to apply to the court. Before signing the documents, the borrower should familiarize himself with the order of payments and the opportunity to terminate the mortgage agreement, otherwise it will lead to large material losses of the borrower.

Also, the termination of the mortgage agreement is carried out in case of violation of the obligations of one of the parties. If both sides find a compromise and by mutual agreement will make appropriate amendments to the contract, then the termination of the contract will not be required, and it will not lose legal force. Bankruptcy of the bank is not the main reason for terminating the contract. With this outcome, the credit institution must send a notice of termination of the contract to the client. If this does not happen, the borrower can apply to the court, which will make the best decision - the law does not specify clear rules on this issue.

Usually the initiator of the termination is the credit organization, 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 you are notified, it sends a notice of termination, it is better to seek help from a company dealing with such matters, which will be able to understand this complicated matter. Such companies specialize in loan restructuring and even buy out real estate that is pledged to the bank.

If the borrower is not able to repay the debt indefinitely, he must immediately inform the bank about this in order to avoid penalties. You can be offered several options to solve the problem: mortgage restructuring or termination of the contract.