For many Russian families, a mortgage has become the only way to purchase their own home. The main difficulty is financial in nature, so young families who have not yet managed to accumulate any substantial capital may commit rash acts and even agree to the bank’s enslaving conditions, just to be able to move into their own apartment.
First of all, it is necessary to remember that a mortgage implies the transfer of an apartment as collateral, that is, the bank becomes its formal owner. The actual owner, that is, the borrower, cannot do anything with the apartment without the bank. If, in addition, he does not fulfill his obligations on the loan, then the bank has the right to sell the collateral property, even if minor children live in it.
Borrowers who have underestimated their strength are forced to participate in lengthy litigation, the outcome of which, in the absence of legal support, is quite certain.
Therefore, it is considered normal practice to contact a lawyer at the initial stage. I act as a mortgage lawyer in St. Petersburg, providing advisory and practical legal assistance.
| The layer's services | Cost, rub. |
| Telephone consultation | For free |
| Legal advice on mortgages in a personal meeting with examination of documents | from 4 000 |
| Mortgage lawyer work | from 10 000 |
Important aspects of a mortgage agreement
The following objects can be left as collateral for a mortgage:
- House, apartment or room, as well as any other residential premises.
- Construction object.
- Land plot.
- Garage or parking space.
- Non-residential premises.
The mortgage agreement does not require notarization and is drawn up in simple written form. Only mortgage agreements for shares in common property are notarized. Before drawing up the contract, both parties must agree on the value of the pledged property. This cost, like the cost of a mortgage, is stated in the contract.
In order to protect your rights and interests, it is important to pay special attention to the following aspects.
- The “Responsibilities” clause should be analyzed in detail. If there are any unclear positions, you should contact a specialist. A mortgage lawyer, as a neutral and disinterested person, will assess the possible risks if one of the parties fails to comply with the terms of the agreement. It is not recommended to contact the mortgagee for clarification, since there is a high probability that he will interpret the text of the agreement in his own interests.
- Please consider all additional terms and conditions included in the contract. Usually they are the cause of delays and various fines. Additional conditions indicate hidden fees and account maintenance fees. It is desirable that such points should not exist at all.
- Most banks reserve the right to unilaterally make changes to the terms of the agreement. For example, they may increase the interest rate. Although this practice is common in almost all financial institutions, this point should be treated with extreme caution.
- The conditions for terminating the contract should be clearly stated. If it is terminated at the initiative of the borrower, are there any penalties provided for him? Early repayment of the loan is formally considered as termination of the contract. It is also necessary to analyze in what case the bank decides to terminate the agreement, so as not to receive “unpleasant” surprises.
- Some banks tend to impose additional services. Remember that insurance of the collateral is mandatory, but the mortgagor can refuse life and health insurance.
- The bank imposes penalties for late payments, but they can manifest themselves in different ways. It is necessary to ensure that fines and penalties do not drive the borrower into debt if a small debt has arisen.
Additional mortgage lending conditions deserve special attention. These include the conditions for providing mortgage holidays, restrictions on the loan object, as well as the actions of the parties in the event of force majeure circumstances. The payment schedule represents the period for fulfilling obligations in parts. It indicates the date of the next payment and its amount.
It is important that a complete calculation of the monthly payment is provided, from which the borrower can see exactly how much he pays to account for the repayment of the principal balance, and how much money goes to repay interest.
When to Contact a Mortgage Lawyer
It is important to understand in which cases the borrower will be able to resolve controversial issues himself without any particular risks, and when professional help is needed. A mortgage lawyer may be needed in the following situations.
- Often a young family takes out a mortgage on an apartment. Unfortunately, shared commitments are not a guarantee of a strong marriage, which is why some couples break up. A mortgage lawyer will tell you how to divide debts taking into account the interests of the parties.
- If there is a delay, the bank tries to collect from the borrower the missing funds and late fees. Taking into account that it is not possible to legally avoid paying a mortgage, borrowers are taking various measures to stabilize their financial situation. But if there are no agreements with the bank, then the latter has the right to demand full repayment of the debt and early termination of the mortgage agreement. In this case, he applies for an apartment that is secured. In order not to be left homeless, you need competent advice from a mortgage lawyer or his comprehensive assistance.
- There are several mechanisms to get rid of debt. The monthly mortgage payment is quite large, so in two or three months the debt will simply be unaffordable. The lawyer will meet with bank representatives and agree on a mortgage holiday or loan restructuring.
- Previously accrued penalties do not always have a legal basis. The bank tries to hide the violation of the terms of the contract in every possible way, because its staff includes experienced lawyers. But a mortgage lawyer, when solving his client’s problems, will first check the legality of the bank’s actions and easily identify such violations.
- The terms of the mortgage agreement determine the circumstances under which it can be terminated unilaterally. If the initiator of termination is the borrower, then he will need legal advice on the mortgage, since the bank will try by all means to protest the termination and will regard this as the borrower’s refusal to pay the loan.
- You should contact a lawyer if there is a threat that your property will be transferred to the use of the bank. This usually happens after debt has been incurred. The bank sells real estate, as a result of which it receives compensation for lost profits.
A lawyer provides consulting services that can prevent the occurrence of controversial situations. For example, when joining a particular program, a borrower turns to a lawyer for advice. The specialist will analyze the terms of the program and assess the legal risks for the client. He will also be able to choose from several programs the most profitable or safe one.
Support of equity participation in construction
One of the budget options for solving the housing problem is participation in unfinished projects. By concluding equity participation agreements (EPA), citizens have the opportunity to reduce the cost of purchasing an apartment, but at the same time they run a high risk of interaction with unscrupulous market participants.
A mortgage loan lawyer will subject the documents proposed for signing to equity holders to a legal review and assess the business reputation of the contractor.
What points are checked when concluding a DDU:
- Availability of state registration of the agreement;
- Readiness of project documentation;
- Availability of construction permits;
- Setting a deadline for the delivery of the object;
- Scope of work included in the cost of the object;
- Payment procedure.
Often, a mortgage lawyer will have to get involved after the contract has been signed. If shareholders are defrauded, no one wants to pay for nothing. The lawyer’s task in this case is to bring the contractor to liability established by law and to get out of the situation with the least losses.
One of the areas of work of a lawyer in mortgage consultation is the analysis of bankruptcy cases of contractors. Often, after collecting funds for the construction of an apartment building, negligent founders decide to liquidate the company. In the case of fictitious bankruptcy, the main events are transferred to the Arbitration Court. At this stage, the task of legal support remains to include the debt in the bankruptcy estate and promptly collect funds from its contractor.
Legal consultation
Unfortunately, we are accustomed to the fact that a lawyer is involved in proceedings when resolving controversial issues, that is, when someone’s interests have already been violated. It is much easier to prevent such situations than to prove that you are right. For this purpose, it is necessary to obtain legal advice.
Lawyer K.S. Aleksandrov, based on his many years of experience, is able to foresee developments in the implementation of various mortgage lending schemes. Free mortgage advice is available to each client who applies, but it must be understood that it is only general in nature. To provide more effective assistance, the lawyer must familiarize himself with all available documents.
As part of providing advisory assistance, K.S. Aleksandrov ready to provide a range of services.
- Not every borrower is able to assess which type of payment is more suitable for him: fixed or annuity. Banks, as a rule, do not carry out explanatory work, however, the conditions in which the buyer of an apartment finds themselves are significantly different. Here the loan lawyer acts as a mortgage broker. He will explain the mechanism for calculating interest and forming payments.
- You should not expect the bank to change the terms of the mortgage agreement after it is signed. The only correct way out is to get advice from a lawyer in advance. He will analyze the terms of the mortgage and identify all the nuances of the contract. In practice, there are situations when a lawyer recommends contacting another bank, since the agreement contains many pitfalls.
- It is important to involve a lawyer at the stage of familiarization with the mortgage agreement. The fact is that it is comprehensive in nature, since it implies mortgage insurance, which includes insurance of the apartment itself, title insurance, life and health insurance of the borrower, as well as third party liability insurance. Some services may be artificially imposed by the bank, so the lawyer may advise contacting a third-party insurance company.
- In the process of preparing to sign a mortgage agreement, a lawyer checks the legal purity of the property. Citizens have the right to purchase an apartment with a mortgage, and it does not matter whether it is a new building or is being purchased on the secondary housing market. In principle, the client himself selects the object of interest to him. In this case, the liquidity of the apartment should suit the lender. The second option is to use the list of objects provided by the bank. All current issues are resolved through negotiations, in which the interests of the borrower are represented by a mortgage lawyer.
- Registration of mortgaged housing also has a number of legal features, so at this stage the assistance of a lawyer may be required.
How can a lawyer solve problems with debt collectors?
In many cases, banks try not to bring the matter to court. The process aimed at arresting and realizing bail can drag on for many months. The collateral premises will be sold at an auction organized by the bailiff service. Each new round of the auction is held subject to a reduction in the price of the premises being sold.
If buyers are not satisfied with the price or technical condition of the premises, they may refuse the transaction. After this, the housing will be transferred to the balance of Sberbank and its specialists will have to sell the apartment themselves. In this case, the financial organization will have to bear significant material costs associated with paying state fees and other overhead costs.
Selling living space does not always allow the bank to make a profit. During periods of economic crises, mortgage lending becomes unprofitable due to a sharp drop in borrowers' incomes and real estate prices. Banks have to seize collateral and keep it on their balance sheet. Selling an apartment that has sharply fallen in price does not allow you to return the loan amount and accrued interest.
Pre-trial debt collection is often carried out by bank security service or collection agencies. Among the collectors you can meet different people who do not always use legal methods of debt collection. Threats, blackmail and constant psychological pressure are used.
In some cases, collectors use collection tactics that are outside the legal framework. They damage debtors' property and use physical violence against them. The case of a debt collector working for the Home Money MFO, who shot a debtor in the shoulder, gained particular resonance. The claimant went to prison for two years.
If a mortgage borrower has problems with debt collectors, he can use the help of a lawyer who will draw up a statement and send it to law enforcement agencies. After this, collectors will have to deal with police and prosecutors.
Defense by a lawyer in controversial situations
Legal advice minimizes the risks of controversial situations, but does not exclude them. Mortgage disputes are complicated by the fact that the subject of these disputes is a large amount of money or residential premises in which the borrowers already live. Banks do not at all adhere to the principles of humanism when protecting their interests, therefore, without the protection of a lawyer, it is quite difficult for a borrower to resist creditors.
When turning to a lawyer for help, the client will first receive comprehensive advice on general legal issues. After a detailed analysis of the current situation, the lawyer will outline ways out of it, taking into account the interests of the client. All consultations are provided both orally and in writing. The borrower has the right to review the bank's documents in advance. The lawyer will conduct a legal analysis of them and explain to the client those nuances that, in his opinion, directly contradict the interests of the borrower.
If it is necessary to resolve controversial issues in court, the borrower will be required to collect a certain package of documents, regardless of whether he himself is the plaintiff or the defendant. Collecting and preparing documents is part of the standard responsibilities of a lawyer who has been hired to resolve a dispute.
A lawsuit is not the most favorable scenario. Often banks are willing to enter into a dialogue with the debtor, since in this case they will be able to receive the entire planned profit. The lawyer will conduct negotiations with the aim of pre-trial settlement of issues.
If a trial cannot be avoided, then you should not rush to refuse the help of a lawyer immediately after filing a statement of claim. It is possible that at the court hearing the interests of the bank will be represented by professional in-house lawyers. The borrower may be required to make a critical decision, so legal advice will be helpful.
The proceedings are complicated by the fact that additional evidence has to be presented, and since it must be documented, only a professional can collect the evidence. To do this, the lawyer uses the resources of his own status. He sends requests, petitions, statements to various government agencies, and then duly submits documents to the court.
Prices for lawyer services for foreign currency mortgages
| Telephone consultation Consultations are provided by lawyers with over 20 years of experience | FOR FREE |
| Preparation and submission of a claim with materials to the court | from 5,000 rub. |
| Drawing up a statement of claim | from 2,000 rub. |
| Representation at a court hearing (for one court session) | from 10,000 rub. |
| Comprehensive civil case management | from 20,000 rub. |
In-house lawyer assistance
In cases where the situation is not characterized by the presence of critical moments, there will still be work for the lawyer. The process of applying for a mortgage is quite complex and time-consuming. A mortgage lawyer provides comprehensive services to support the transaction. He searches for a suitable property, checking its legal purity and compliance with the lender's conditions. Then the lawyer begins to collect a package of documents for drawing up and concluding a mortgage agreement. At this stage, he discusses with his client all issues regarding the distribution of mortgage obligations between family members.
After analyzing the text of the agreement, which is usually drawn up by the bank itself, the lawyer evaluates the possibility of introducing or editing certain conditions that are contrary to the interests of the client. If this is not possible, then the lawyer will select the optimal loan program.
The signing of the contract itself requires legal support. It is necessary to ensure that the transaction takes place within the framework of the law and the rights of the borrower are not violated. At the final stage, the lawyer provides assistance in registering an apartment purchased with a mortgage, as there are several nuances here too.
What is mortgage assistance?
The trend of involving intermediaries when applying for a mortgage loan came to us from Western countries, where it is very difficult to understand the abundance of offers without outside help, as a result of which such specialists are in great demand. However, in domestic realities, the emergence of credit brokers did not go very smoothly: many cases of fraud caused doubts to arise regarding the reliability of such organizations. However, there are also really serious organizations on the market that can provide assistance in obtaining a mortgage loan.
Loan “State support for families with children” SberBank, Individuals. No. 1481
from 0.1%
per annum
up to 12 million
up to 30 years old
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