An open circle: how to act to prevent delays in the mortgage
The main risks of mortgage loans in most cases are associated not with someone’s fraudulent actions, but with borrowers’ own inability to calculate their financial strength and foresee all risks. Experts told the RIA Real Estate website what are the main causes of overdue mortgage arrears and how they can be avoided.
So far, the share of arrears is small: at the end of July 2019, the volume of mortgages taken by the population amounted to 7.023 trillion rubles, while overdue payments amounted to 1%. In quantitative terms, this means about twenty-five thousand borrowers who delayed mortgage payments for more than 90 days in the first half of 2019, says Artem Kadnikov, senior associate at Olevinsky, Buyukyan & Partners Law Firm, referring to Equifax information and DRINK. At the same time, many delays and the problems following them can be avoided if borrowers simply do not make annoying mistakes and act to their own detriment.
Borrowers can, in the literal sense of the word, secure problems with a mortgage even at the stage of obtaining it, if they provide the bank with incorrect information about themselves.
Of course, before making a decision on granting a loan, banks also conduct a risk assessment – carefully study the credit history of a potential borrower, evaluate its abilities and capabilities. “Because of this, we have a very high level of mortgage loan service quality compared to other types of retail loans – only 1-2% of borrowers commit violations,” explains Alexei Volkov, marketing director at the National Credit History Bureau.
Nevertheless, such situations are possible, for example, if you attract a special company to assist in obtaining a loan. Many brokerage houses play a useful role, and unload the borrower from collecting a large amount of documents. But sometimes they help in the preparation of fictitious agreements, real estate lease agreements, which increases the chances of obtaining a mortgage of a larger amount, explains the author of the telegram channel “Realtor’s Diary” Evgeny Tanichev. Often, in agreement with the employer, inquiries show wages at an amount higher than real.
On the Internet you can find a wide variety of offers from companies that supposedly help to get a mortgage for a fee, Kadnikov laments. On the websites of such companies it is indicated that they will help to prepare documents so that the mortgage application is approved.
In this case, in a private conversation, the client receives information about the personal relationships of the company in a particular credit institution. The hint is simple – it is personal relationships that will help you get the coveted loan. As a rule, these are ordinary scammers – they are aimed at the banal deception of customers (potential borrowers). But there is a much more dangerous option. Intermediaries go on a deliberate forgery of documents (providing false information about income), and this may well result in criminal prosecution of the borrower, warns Kadnikov.
A common reason for future delinquencies in mortgage payments is often too many different loans that borrowers take over, complains Vadim Mamonov, director of the loan department at Rosbank House.
Applying for a consumer loan or for a microloan for a single interest repayment only aggravates the situation, since it creates an additional credit burden with higher, and if we talk about microfinance organizations (MFIs), with much higher interest rates, he said.
Only a mortgage loan in the MFI itself can be worse, Tanichev emphasizes.
Although they are now officially forbidden to issue loans secured by real estate, they easily circumvent this. Applications that they receive are passed on to private money lenders, who lend at a high interest rate, which ultimately leads to the loss of real estate.
As a rule, this is made out as a loan agreement with a pledge from the “physicist” to the “physicist”, moreover, both the notarial method and the notarial method are used (simple written). An encumbrance is registered at the Federal Registration Service. Interest on such a loan is included in the final amount of the debt, and the contract states that the loan is provided without interest. Moreover, the cost of such a loan can be very burdensome from 3 to 10% per month, or from 36% to 120% per annum, explains Tanichev.
In addition, customers do not take into account the risks of excessive borrowing, which can be formed due to raising funds for a down payment from a consumer loan or lack of savings for home repairs, warns Mamonov.
For mortgages, situations of “re-lending” in MFIs are less common than in consumer loans. The key principle for borrowers in a difficult situation is to always get in touch with the bank and immediately report the difficulties encountered in order to find ways to solve the problem and save housing together with the bank.