Is it dangerous to buy a mortgaged apartment from a bank?

What is collateral property?

Collateral property is property that the bank took from the borrower to pay off the resulting mortgage debt. Let's consider the situation: you are purchasing an apartment with a mortgage. This property is pledged to the bank until you repay the entire loan amount. If you do not fulfill the borrower's obligations and make mortgage payments on time, you will be in arrears. The sale of the apartment will help the bank cover the losses it has incurred, so the property is put up for auction.

When can real estate be sold?

If the borrower carefully makes mortgage payments and does not allow any arrears to occur, he continues to use the collateral property (apartment). But sometimes, due to various circumstances, a person is unable to pay the mortgage. This leads to the fact that the debt grows, and the bank puts the collateral up for auction.

Sberbank apartments can be sold in the following cases:

if the borrower and the bank reach a mutual agreement. Sberbank can accommodate a buyer who wishes to purchase collateral and reissue a mortgage on it. To do this, the new borrower must submit documents to the bank to re-register the agreement in his name. Obligations under the mortgage are transferred to the buyer, and he must compensate the old borrower for the amount that he paid to the bank. This type of transaction will cost the client less, but will require more time and effort to complete the documents.
By the tribunal's decision. If the borrower seriously violates the terms of the loan agreement and refuses to cooperate with the bank, the latter is forced to go to court. Sberbank uses the sale of the debtor's real estate as a last resort, and is reluctant to do so. As a rule, they first try to resolve the problem peacefully, to find a compromise, and only if this does not produce results, the bank takes away the debtor’s apartment through the courts. When the court makes a decision to confiscate property, real estate from Sberbank can be sold at auction.

Options

Based on the capabilities of the buyer and the conditions accompanying the transaction, the following options may arise for registering the purchase and sale of an apartment as collateral:

An extrajudicial (pre-trial) procedure, when the seller is a person who has previously registered an apartment in his name, but has not paid off his debt obligations.
A legal procedure that occurs on the basis of a court decision when the seller is a creditor. In this case, the seized property may be put up for auction.
Purchasing an apartment with repayment of the mortgage (other debt obligations).
Purchase of an apartment with renewal of the loan agreement.

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One of the significant differences when conducting a transaction is the status of the parties to the transaction, which can be individuals - buyer and seller, and legal entities:

creditor;
upon assignment of the DDU to the developer.

If the encumbrance is registered between the developer and the bank, then when purchasing such housing, even more difficulties arise, and the risks can become significant. However, if the buyer believes that the risk is justified, he will have to take a number of additional legal actions, forming not a bilateral, but a trilateral agreement, in which the buyer (assignee) simultaneously enters into a transaction with the bank and the developer.

The purchase and sale procedure depends entirely on the circumstances of the transaction. Based on its features, an action algorithm is constructed. The main differences relate to whether or not a court proceeding was held, on the basis of which the encumbered object became the property of the bank or remained with the buyer. If the transaction takes place by agreement of the parties, then the main difference is whether the loan agreement is reissued to the new owner.

If the bank receives a court decision on seizure, it has the right to repay losses from the investment of an unscrupulous payer by selling the apartment against debt obligations. As a rule, such apartments are transferred to auction organizers and sold through electronic auctions.

Both sellers and buyers send an application to participate in the auction online to the address indicated on the website. In order to find such an object, you need to register your participation in the auction with an application and pay the participant’s entry fee. As a rule, it acts as an advance payment.

When purchasing an apartment at auction, the amount of the entrance fee is counted towards the total cost of the purchased property. If the participant did not choose the lot or lost the auction, the advance payment will be returned to him. And if you win the lot, but refuse to purchase the apartment, a fee will be charged by the auction organizers to pay the fine.

IMPORTANT: If the terms of the auction indicate that the participant’s contribution is a deposit, it may not be returned if the purchase of real estate is refused (

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Art. 380

381 Civil Code of the Russian Federation

), in case of refusal, take the next step towards receiving the lot.

The entry fee is made on the basis of a civil passport; no other documents are required. After paying the fee, the participant receives access to the site where real estate with the declared characteristics is displayed. Here he can view detailed characteristics of apartments offered for the minimum price. For one participation, he has the right to select one lot and begin bidding.

Advantages of purchasing such an object:

When real estate is put up for electronic auction, the encumbrance is removed from it, and the organizers monitor the purity of the transaction.
There is a chance to purchase an apartment at a relatively low cost.
The auction organizers are in charge of completing the transaction.

Naturally, there are some disadvantages here:

It is difficult to thoroughly study the characteristics before buying an apartment and, therefore, it can give out unforeseen “surprises” after purchase.
An auction participant may make a mistake, and the lot he has chosen will jump in price in a few steps, which will deprive the purchase of an apartment of the advantages.

If there was no trial, and the debtor himself voluntarily transferred the rights to the apartment to the bank, realizing that he could not pay off the debts, the parties draw up an agreement. This agreement is in the nature of an annex to the loan agreement and is drawn up in the context of its provision on the transfer of collateral to the lender. After this procedure, the encumbrance is removed, and the bank submits the object for auction.

The debtor may enter into an agreement with the bank on the sale of the apartment, and he undertakes to:

independently sell the residential premises;
repay a loan.

Sometimes, when the copyright holder contacts the lender, it is allowed to refinance the loan rate and postpone the payment of debt obligations. However, the encumbrance on the property is removed only when the loan obligations are repaid. Such an apartment passes to the copyright holder without encumbrance. The search for an object is carried out as standard:

through a realtor (this article describes how to buy an apartment without a realtor);
on a website providing information about the sale of real estate;
through advertisements in the media.

In this case, two action algorithms can be used.

Option 1 consists of the following steps:

The seller receives the bank’s official consent to the transaction and prepares the documentation required for execution and registration of the agreement.
The parties enter into a preliminary purchase and sale agreement (PPSA), in which the seller undertakes to remove the encumbrance from the mortgaged apartment, and the buyer will be able to buy this property.
The seller receives a consumer loan taking into account the upcoming sale, uses the funds received to pay off the balance of the mortgage loan and removes the encumbrance.
A purchase and sale agreement (PSA) is drawn up, as a result of which the apartment, which is pledged to the bank, is transferred to the buyer without any risk.

This option is convenient for the buyer, who is provided with complete security of the transaction; the risk is borne by the seller, who may suffer a loss due to the buyer’s dishonest actions.

ADVICE: In order to avoid property damage, in this case, according to the PDCP, it is best to charge not an advance, but a deposit.

Option 2 is aimed at preserving the interests of the buyer and carries significant risk for the seller. Its algorithm is as follows:

The seller receives the official consent of the bank and prepares the documentation required for execution and registration of the transaction.
The parties enter into a PDCP, on the basis of which the buyer deposits the loan balance with the bank and repays it in full.
The encumbrance is removed from the residential premises and a property transaction is concluded, with mandatory registration.

The advantages of such a procedure for the seller are the sale of the mortgaged apartment and the repayment of debts to the bank, and the disadvantages are the risk that he bears in the case specified in option 1. The disadvantage for the buyer is the risk outlined in option 2, which can be compensated by a significant reduction in the value of the property.

If the buyer has deliberately planned to purchase a home with a mortgage, he can re-issue the loan agreement in his name. In this case, the property transaction takes place under the control of the pledgee, and no external circumstances affect its legal capacity. Risks in this case are practically eliminated.

The transaction algorithm is as follows:

The debtor submits an application to the bank for permission to sell the mortgaged apartment with a reissue of the loan.
The buyer submits an application to purchase an apartment pledged by this bank using a mortgage. Certificates about family composition and income are attached to the application.
The credit institution agrees to the sale and purchase of housing.
After this, a DCT is drawn up and the loan agreement is reissued.

In this case, the advantages for both parties are obvious and are expressed in the fact that each party receives what they planned to receive in the transaction. Risks are virtually eliminated for both counterparties. The only insignificant disadvantage is that a certain amount of time will be spent on the bank monitoring the solvency of the new borrower, as well as the possibility of the bank refusing if its credit history turns out to be inappropriate.

This procedure is similar to a transaction with an individual when repaying a loan (option 2). It consists of the following steps:

The buyer enters into a contract with the developer, transferring money to the bank where the new building is pledged.
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The bank sends an official letter authorizing the sale and removes the encumbrance on the specified share.
The contract is drawn up and registered, the buyer assumes ownership rights in accordance with the law.

Purchasing a mortgaged apartment from a developer with loan repayment is permissible only after the house is put into operation.

How is the sale of collateral real estate carried out?

If a client wants to purchase real estate sold through Sberbank, the sale can occur in several ways:

direct sale;
auction.

If you are planning to buy apartments from the bank through Sberbank, the official website where collateral real estate is sold will help you. At auction the property is sold as follows:

The Sberbank apartment is put up for auction, indicating its initial price. This is usually about 70-75% of the average cost of housing on the real estate market.
Those wishing to purchase collateral can offer a price, but it must be higher than the minimum value.
The auction participant who offers the highest price for the property becomes the buyer.
If no buyers have been found for the mortgaged apartment within 14 days, the price is reduced by 10-15%. This continues until a person appears who wants to purchase this object.
If your price for a property is higher than other bidders offered, you become the winning bidder. After this, all you have to do is pay the bank: you can pay in cash or draw up a mortgage agreement.

It is convenient to purchase collateral real estate from Sberbank, since the sale takes place through its subsidiary.

To participate in the auction, a potential buyer must go to the official website of this organization and register on the site where the auction is held, as well as obtain accreditation. To make the home buying process easier, you can create an electronic signature.

Having confirmed accreditation on the site, the client must top up his virtual account. It is necessary to deposit at least 2% of the price of the collateral property.

Purchasing a mortgaged apartment that is pledged to the bank

The official document of sale and purchase takes into account the interests of both parties: the buyer and the bank. The contract specifies the terms of the transaction, conflict situations and methods for resolving them.

Before buying a home through auction, you need to carefully study the following details:

Check out the condition of the living area in detail. Assess the quality of the property to the best of your ability. Find out which family members are registered in the apartment, which of them has the right to property. Make sure that there are no minors registered in the apartment. This, of course, will not prevent the bank from putting the property up for sale, but the process of re-registration of property in this case will take longer.
Request the necessary documents from the bank and other authorized organizations. If any violation emerges after the contract is signed, it will be entirely your responsibility.
Check all the documents that the owner of the home gives you if you are buying it directly from the borrower. Evaluate not only the papers for the apartment, but also personal documents, for example, a passport. If there is a discrepancy in the documents, it may turn out that the seller can legally refuse the transaction, taking away the deposit you paid.

There are three channels for purchasing mortgaged housing:

Auctions and trading from the bank.
Announcements from borrowers. It is important that the sale occurs only with the approval of the financial institution.
Real estate agencies.

There are three main ways to organize a transaction:

Early repayment of the loan by the Seller and subsequent sale of the apartment.
Early repayment of the loan by the Buyer in the process of purchasing an apartment.
The mortgage debt is not extinguished, but is transferred to the Buyer as a result of the transaction. That is, in fact, a mortgaged apartment is being purchased using a mortgage.

Which way is better to go{q} What is the procedure for purchasing an apartment with a mortgage encumbrance{q} Where the Buyer's risk will be higher{q} The answer is ambiguous and will depend on the specific situation. In the real estate market, all three options for purchasing a mortgaged apartment are used. Let's look at them one by one.

The easiest way to get rid of the encumbrance of a mortgaged apartment is to repay the loan ahead of schedule. Then the Seller can act freely, without asking the bank’s consent to the transaction. The only question is how exactly (by what means) the Seller will be able to repay the debt to the bank {q}

It all depends on the size of the balance of this debt. If the Seller has a relatively small amount left to pay the bank (for example, 50-100 thousand rubles), then this amount can be transferred to him by the Buyer before the transaction as an advance or deposit. Having repaid the mortgage loan with this money, the Seller obtains a debt repayment certificate from the bank and removes the encumbrance from the apartment from Rosreestr.

After this, the purchase of an apartment occurs in the usual way (see the link - the corresponding step of the INSTRUCTIONS).

Another option for early repayment of debt for the sale of a mortgaged apartment is refinancing the Seller for the duration of the transaction. That is, the Seller takes out a regular consumer loan for 2-3 months (from the same bank or another), pays off the balance of the mortgage debt, removes the encumbrance from the apartment, and sells it to the Buyer. Having received money for it, the Seller immediately repays his short-term consumer loan.

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This method of purchasing an apartment with a mortgage (collateral) from a bank is the easiest, most reliable and safest for the Buyer. But expensive for the Seller. After all, consumer loans have the highest interest rates. Therefore, he needs to reduce the term of such a loan to a minimum.

If the Seller has a significant debt balance, and he does not have the opportunity to refinance, then it is too risky for the Buyer to transfer him a large amount as an advance (to pay off the debt). In this case, the purchase of a mortgaged apartment pledged to the bank occurs with the involvement of the bank itself. The bank here requires not only written permission for the transaction (needed for registration), but also its direct participation in the transaction itself.

Then the Buyer, before making an advance payment for the apartment, must first agree on the terms of the transaction with the mortgage bank. In this case, the bank's lawyers take control of the transaction, so the risk of purchasing a mortgaged apartment for the Buyer is greatly reduced.

The key point here is mutual settlements under the transaction. After signing the Sale and Purchase Agreement, the Buyer transfers money for the mortgaged apartment in two parts at the same time - one part to the bank (to pay off the debt), the other part to the Seller (the price of the apartment minus the debt).

The method of transferring money for an apartment can be either cash or non-cash. For cash payments, two safe deposit boxes are rented, respectively, and for non-cash payments, two letter of credit accounts are opened (see how this is all done at the specified link in the Glossary).

After the agreement is signed, the transaction is registered in Rosreestr, and the payments are completed, the bank issues the Buyer a certificate of repayment of the mortgage loan. With this certificate, the Buyer himself removes the encumbrance from the purchased apartment in Rosreestr.

Here we are talking about a case where the Buyer himself expected to use a mortgage loan to purchase an apartment, but the chosen apartment also turned out to be mortgaged and already mortgaged to the bank. How to be here{q}

There can be two situations:

The buyer takes out a mortgage loan from the same bank in which the apartment he has chosen is mortgaged.
The buyer obtains a loan from another bank.

In both cases, the very possibility and conditions of such a transaction will depend on the position of the bank.

In the first case, the procedure for purchasing a mortgaged apartment and re-issuing a mortgage to a new borrower will be much simpler. Here, the mortgage bank has complete control over the entire process and creates transaction conditions that are beneficial to it. At the same time, the mortgaged apartment itself remains as collateral in the same bank, and the encumbrance on it is not removed. The new borrower (Buyer) is approved for a new loan, and the apartment already mortgaged to the bank is approved.

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Such transactions are carried out by many banks, including Sberbank. All of them are supervised by lawyers and the bank’s security service. The risk of purchasing a mortgaged apartment under such conditions for the Buyer is minimal.

In the second case, everything is more complicated. To obtain a mortgage for an apartment in another bank, you need to agree on the conditions and interests of two different credit institutions. At the same time, the conditions of Rosreestr for re-registration of a registered mortgage encumbrance on an apartment in favor of a new mortgagee must also be met. This is a rather complicated and lengthy procedure; banks are reluctant to do it, so it is rarely found on the market.

As a result, if the Buyer decides to buy an already mortgaged apartment with a mortgage, then it is better for him to apply for his loan in the same bank in which the apartment is mortgaged.

Pros and cons of transactions with collateral real estate

Selling mortgaged apartments has not only obvious advantages, but also some disadvantages. The advantages include:

lower cost. Due to the fact that the Bank strives to get rid of the collateral real estate as soon as possible, the sale takes place at a reduced price;
prompt execution of the purchase and sale transaction;
the opportunity to obtain a mortgage for the purchased property, which will allow both the bank and the buyer to save time;
a legally clear transaction: the bank guarantees the buyer that there are no registered third parties in the purchased apartment and there are no debts to pay for utilities;

The disadvantages of transactions with collateral are as follows:

it is difficult to find a buyer willing to buy such real estate - many are afraid to purchase an apartment that is pledged;
The purchase and sale procedure may take a long time. This is due to the need to prepare more documents: first you need to remove the previous encumbrance from the property, and only then register new rights to the apartment;
existence of risks for the buyer. It is necessary to document and record the fact of deposit of funds by the buyer, indicate the terms and procedure for payment. This will allow you to avoid the seller’s possible refusal of the transaction and other unpleasant surprises.

The purchase and sale of collateral is beneficial in its own way for all parties to the transaction. The bank will receive funds to cover costs, the seller will be able to pay off the mortgage debt and relieve himself of the burden of the loan, which turned out to be unbearable, and the buyer will purchase his own home at a relatively inexpensive price.

Conditions for purchase

But there are situations when the collateral property is forcibly transferred for sale. This happens with real estate aggravated by debts, when restructuring and deferment did not lead to the desired results. Then, by court decision, the apartment or house is subject to sale at open auction.

What a buyer needs to know who has taken the risk of purchasing collateralized housing at an auction:

minor children may be registered in the apartment, which immediately makes such a sale transaction illegal and contested;
enforcement proceedings are a complex procedure during which bank employees and bailiffs make mistakes, which gives the debtor the right to challenge the forced sale in court;
most often, both the bank and the seller company shift the process of eviction of the debtor to the buyer, so you need to be prepared for conflict situations;
if the object is interesting, the initial cost may increase during the auction.
debt for utility bills, always find out personally the debt of the sellers for the apartment or jointly obtain certificates of debt.

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An undoubted “plus” of this purchase option is that after several unsuccessful auctions, the initial price of the lot is significantly reduced.

There are two main options by which the sale of such an apartment can be realized:

Sale with loan repayment. In this situation, the home seller, immediately after receiving money from the buyer, repays the debt in full, removes the encumbrance, and only then the title to the home is re-registered. This scheme is no different from a regular purchase and sale, except that you will have to carefully monitor all stages. Some scammers may simply take the money, supposedly repay the loan, and then claim that the bank has counted even more debt and needs to raise the price of housing. Before the market price, which is already meaningless, because the buyer was attracted precisely by the low cost of real estate. The bank often does not know about such a scheme and does not participate in it in any way.
Re-issuance of a loan. In this situation, a tripartite agreement is concluded between the buyer, seller and bank, under which the bank removes all debts from the seller and assigns them to the buyer. In exchange for this, the seller transfers the housing to the buyer, and the buyer – a certain amount that was previously agreed upon. The main disadvantage of the scheme is that the bank must first approve the buyer, his financial condition, and so on.

Since the first of the presented options is practically no different from the standard purchase and sale, below we will consider in more detail the second scheme, which still differs from the basic purchase and sale procedures.

Procedure

The seller contacts the bank with a statement that he plans to sell the mortgaged property.
If the bank agrees, the seller looks for a buyer.
After the buyer finds and knows the fact that the apartment is under encumbrance, he contacts the bank.
An application is drawn up for the redemption of the collateral property with the simultaneous re-issuance of a loan for this person.

These statements do not have any specific form or appearance. They are compiled on the spot, right in the bank, and directly depend on the chosen financial institution.

Depending on the situation, the bank, buyer and seller develop a scheme according to which the entire operation will be carried out. To the point that the buyer rents a safe deposit box at the bank and deposits into it the amount agreed upon with the seller. The latter will be able to withdraw the money only when the loan and ownership are re-registered. There are a huge number of similar schemes and it all depends on whether one or another option suits all parties or not.
The loan and ownership rights are being reissued on the basis of previously reached agreements.
The seller takes the money, and the buyer becomes the new borrower on the loan and the new owner of the property.

After repaying the debt, the buyer will need to remove the encumbrance and receive a certificate from the bank that the loan is closed and there are no claims.

Documentation

For such a transaction, a fairly extensive package of documents is required. And from both the seller and the buyer. The main feature: you need documents that are relevant directly to the execution of a purchase and sale transaction and, at the same time, you need to provide papers for obtaining a mortgage loan. The specific list directly depends on the chosen transaction scheme and bank, but an approximate list may look like this:

Passports of the seller and buyer.
Documents for the apartment (it is advisable to make a fresh extract from the Unified State Register of Real Estate).
Valid pledge and mortgage agreements.
Certificate of income of the buyer and a copy of his work record.
Certificate of persons registered in the collateral apartment.
Certificate of presence/absence of debts for utilities.
Certificate from the tax office regarding the presence/absence of real estate tax debt.
Contract of sale.
Consent of the spouse to obtain a mortgage and purchase a home (for the buyer) and to the purchase and sale transaction (for the seller). Only relevant if the client is married.
Instead of consent, you can provide a copy of the marriage contract, provided that it contains clauses regarding the purchase and sale of real estate.
Permission from the guardianship authorities. Only for situations where one of the homeowners is a minor (or if it is planned, among other things, to register the apartment for a minor).

Expenses

All costs associated with completing the transaction may be paid by the seller or the buyer, depending on the agreements. They can also divide them equally or in any other proportion. It is recommended to separately describe this point in one of the clauses of the purchase and sale agreement and, of course, discuss it in advance.

Standard list of expenses:

Drawing up a contract for the purchase and sale of real estate from a notary with subsequent certification: from 2 thousand rubles (usually more).
Registration of an insurance policy for a new borrower-buyer. It is impossible to even name the price in advance. Depends on bank conditions, real estate prices and many other factors.
Payment for the services of an appraisal company. Such a report is not always needed, but the bank can request it as an ultimatum. The price also varies widely, but only in rare cases will it be less than 2 thousand rubles.
Collection of necessary documents for the purchase and sale transaction. From 1 thousand rubles. This is usually done by the seller.

Also, the buyer must prepare the amount for which he agreed with the seller. Separately, it should be noted that some banks require a down payment despite the fact that the loan is not issued from scratch. All such issues should be discussed with a representative of the selected financial institution in advance.

Considering the fact that all three parties to the transaction must come to a “common denominator,” the procedure for agreeing on the contract and its terms usually takes the most time. The collection of documents rarely takes more than 1 week, and the purchase and sale transaction itself, if desired and with the consent of all parties, can be completed in just a few hours.

Re-registration of ownership of a new apartment takes 3 days or more.

There are always risks for the buyer, even with this option of purchasing real estate, when everything seems to be controlled by the bank. Let's look at the main ones:

Fraud. The most common problem. Despite all the tricks, without an experienced lawyer it is almost impossible to identify all the pitfalls of a particular situation. In this case, the most common option is in which the seller receives money for the home and transfers the loan from himself to the buyer, but at the same time does not re-register ownership for one reason or another. This is quite difficult to implement, but possible. And the main problem is that the bank doesn’t care who will pay the loan. As a result, he is unlikely to interfere.
Termination of agreements. Some sellers are not very honest with the buyer. Already at the last stage, when a lot of money and time have been spent on preparing the deal, they may refuse to enter into an agreement.
Bank refusal. Many financial organizations prefer not to take risks, and even if they agree to such sales transactions, they put forward such serious requirements for the buyer that not every person will be able to meet them. In addition, the bank may simply not give permission for the transaction at the last stage (even after agreements have been reached) without explaining the reasons.
Unfavorable conditions. The home buyer may receive significantly worse mortgage terms than the seller received. However, this problem can be quickly solved with the help of refinancing.
Tightening. The bank or seller may delay the conclusion of the transaction for one reason or another. Even if in the end everything is done as needed, it may take much longer than a regular purchase of an apartment with a mortgage. It should be noted that this item is a completely fair price for the low cost of housing.

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The procedure for purchasing an apartment that is pledged is quite complicated so that you don’t even try to implement it yourself, without the help of lawyers. During a free consultation, experienced specialists will analyze each individual situation and give their recommendations. They can also support the transaction, promptly informing the client about certain nuances that need to be paid attention to.

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The buyer is subject to a number of standard requirements that give the right to draw up civil contracts:

majority;
capacity;
having a civil passport with registration.

If the purchase and sale is accompanied by the execution of a loan agreement, then the person applying for the mortgage must be 21 years old. The seller also falls under these criteria; in addition, he must have on hand a package of documentation for the apartment, including the right establishing document, which is the agreement for the purchase and sale of the apartment with a mortgage, according to which it became the property of the seller.

Is it profitable or unprofitable to buy bank real estate as collateral?

If you are counting on a purchase with a 50% discount from the market value, then I can disappoint you - such options usually do not end up on the open market, but go their own way. All that an ordinary buyer can deal with is a maximum of 10-15% (if you’re lucky).

But. As I always tell at seminars, if you managed to buy real estate below the market price, you are already in the black. If the market continues to decline further, you will simply get closer to the new level without losing money. If in the future the real estate market stabilizes or even increases minimally, you have already made money.

Conclusion : if you can find and buy real estate cheaper than the market, it will be profitable.

Dangerous or not dangerous?

Almost all of the collateral in banks is what they once approved for a mortgage. And there will be no outright fraudulent options here. Another question is that banks usually do not delve deeply into the history of real estate, leaving it to the conscience of the insurance company. What comes out of this can be seen from time to time in the media when an apartment is taken away from a buyer.

Moreover, the collateral real estate of banks is heterogeneous - these can be objects on the bank’s balance sheet, or they can also be those that are still owned by the borrowers.

Conclusion : you still need to check.

Where to look for collateral real estate?

This is where we come to the most important thing - our list of secret and semi-secret pages with collateral real estate.

Bank VTB24 . There are many apartments in Moscow and the Moscow region. Prices are almost everywhere market prices. But. Everywhere there is definitely an opportunity for bargaining, as we write below in the section “What to do next?” Special mortgage conditions for these properties - a rate of 12% in rubles.
Delta Credit Bank . List of objects in an Excel file. There are not many objects in the public domain, mainly in the regions. Special conditions for mortgages are also promised.
Sberbank . Very convenient property search. On the page, click the orange “Select property” button and enter the basic parameters - region, city, property type.
MTS bank . Two options - an Excel file with a description of the property and a description on the site itself. The website provides telephone numbers of the owners of the apartments for sale. Mainly the Moscow region and regions. There are new buildings.
Moskommertsbank . There are no preferential loans. Real estate in the Moscow region and regions.
Binbank . Mainly regional real estate. Sochi, Kazan, Saratov, Novosibirsk, etc.
Absolut Bank . PDF file. In Moscow, prices are clearly inflated. I think the same is true with the regions. To bargain. To bargain. And bargain again...
Bank of Moscow . In connection with the merger with VTB24, all collateral real estate was transferred there.
Raiffeisen Bank . There are many real estate options. There is a choice by region. Tab - collateral real estate.
Uniastrum Bank . The bank came under the wing of the Eastern Bank - there is no collateral.
Alfa Bank . There are few objects, and they are scattered across several regions.
Rosselkhozbank . We did a convenient search.
Rosevrobank . Now there are only 5 objects, some are interesting.
Gazprombank . The bank promises to reduce the mortgage interest rate for this property by 0.5%. The section has been removed from public access
Credit Bank of Moscow . There is some real estate here, but mostly Moscow and the region. Prices not specified.
MDM Bank . The bank has progressively created a section with collateral real estate on Avito :). Comfortable. They also opaquely hint at bargaining and preferential lending conditions for these particular objects.
Rosbank . Large selection of objects in all regions. There are also quite a few in Moscow and the region. Starting prices look good in some cases.
Khanty-Mansiysk Bank . The bank moved into the structure of Otkritie Bank.
Capital Bank . The bank closed.
Ural Bank for Reconstruction and Development . There is little residential real estate. For example, a plot in Sochi worth 795 thousand rubles.
Zenit Bank . Excel file with real estate in all regions. There are a lot of Moscow region, especially plots. They promise attractive conditions.
Sovcombank . There is little residential real estate. The central region, there is the Moscow region. They ask you to bargain and offer your prices :).
Sevastopol Maritime Bank . Sevastopol Bank, that’s why the real estate here is Crimean. If you were just thinking about buying an apartment in Crimea, here is an option. There are many photographs of the objects.
All-Russian Regional Development Bank . Only 3 properties left.
Bystrobank . They don’t list the property on the website; they suggest calling specialists right away and finding out.
Housing Finance Bank . There is a wide range of options - from Omsk to Moscow. There are attractive options.
Bank Uralsib . Sooo many different real estate. There is a choice by region. There are interesting options.
Bank "Saint-Petersburg . A considerable number of options. The bulk are St. Petersburg and the Leningrad region.
Baltinvestbank . The bank's collateral real estate is sold through a special office.
Bank Union . It is possible to select real estate by region. Most of all in Moscow.
Zapsibkombank . Most of all - Siberian real estate, in the Moscow region currently - 3 objects.
Bank opening . Objects are piled up, all regions are in one place, which is inconvenient. And there are few of them.
Fia bank . The bank is going through bankruptcy proceedings.
Ria bank . Real estate catalog in Excel file. There are few objects.
Bank North-Eastern Alliance . Various regions. Mostly land plots, and large ones at that.
SKB bank . Various regions of Russia. Various real estate. There are no facilities in Moscow.
NBD bank . Mainly real estate in Nizhny Novgorod and the region.
Globex Bank . PDF file with real estate in various regions. Moscow and the Moscow region are also present.
Banca Intesa . Real estate in different regions is different. There are photographs of objects.
Lipetskcombank . PDF file. Objects mixed up. Mainly commercial real estate.
Bank Trust . PDF and Excel files. Commercial and residential real estate in various regions.
Legion Bank . Excel files with various real estate in different regions.
Surgutneftegazbank . Mainly commercial real estate. Residential - only plots.
Moscow Industrial Bank . Absolutely different properties mixed together. There is no Moscow region. They promise favorable lending conditions.
Mosoblbank . PDF file with various properties. There are no prices in it. Favorable purchasing conditions are promised.
Akbars bank . Convenient database of collateral real estate, you can see photos. The Moscow region was not noticed. Preferential lending is offered - 1% lower than usual.
Communication bank . Real estate - 41 objects in various regions, ranging from apartments to plots. They promise preferential lending conditions for these objects.
Bank Russian Capital . Mainly Moscow and the region, there are no prices on the page, but they promise preferential conditions.
OTP bank . A lot of real estate. Mainly Moscow, St. Petersburg and Omsk.
Metallinvestbank . There is not much real estate, the regions are different. It is possible to view photographs.
Rosenergobank . Various real estate in early regions of Russia. There is a description and photographs.
The most “delicious” thing at the end is the website on which the property of all banks that are going through the bankruptcy procedure is sold.

How to buy an apartment secured by a bank

When making a responsible decision to purchase a mortgaged apartment, be sure to take into account the condition of the building, location and other technical parameters. Be sure to negotiate all the conditions with the bank and only then make the right decision.

Let's consider a situation where a bank sells a debtor's apartment due to failure to fulfill loan obligations. Everything is not as complicated as unscrupulous borrowers think. To begin with, the bank prepares documents and submits them to the court. A decision is made on the basis of which the bank is allowed to put the home up for sale. On the official websites of banks or other financial organizations, you can always see information about the objects being sold at auction. When purchasing an apartment as collateral from a bank, follow the standard requirements. Make sure that the collateral housing does not have:

Debt for utility bills
Registered citizens
Registration issues
Problems with documents

Basically, when selling mortgaged apartments by banks, there are no risks. But if you have any doubts regarding the purchase or questions related to the further preparation of legal documents, involve lawyers or experienced realtors.

Risks of buying an apartment from a contractor

The contractor must supply materials and perform services that are necessary for the construction of the new building. The construction company pays with living space. The risks when purchasing an apartment in a new building depend on the category of the contract being concluded.

When registering a DDU, the contractor acts as the person who transfers ownership to the buyer. A sample DDU is here. The buyer's risks when purchasing an apartment under the DDU do not exceed those that may arise when purchasing housing from a construction company. The contractor receives for his work objects that can begin to be sold before he fulfills his obligations in full. Therefore, construction work on the real estate has not yet been completed, but alienation has already begun.

When buying an apartment in a building under construction, the above situation is a big risk:

if the contractor fails to fulfill his obligations, he will not be able to obtain the property, even if he sells it;
Buyers will not be able to return the apartment back even through court.

Buying an apartment from a developer involves the following risks:

buy an apartment in a long-term construction, after which construction may be stopped;
purchasing housing in a house on a site with a dubious status;
multiple sales of one residential premises.

Mortgage apartments from banks in Moscow

Mortgage housing put up for sale by the owner always causes distrust among Muscovites. And after the proposed mortgaged apartment for sale, there may simply be no buyers. This unpleasant surprise entails big problems. The sale of a mortgaged apartment can also be forced. Based on an agreement between the borrower and the bank, the debtor transfers his home to the bank to repay the mortgage. In this case, he must definitely remove all relatives from registration and sign out himself. The bank monitors all the actions of the borrower, so there are practically no risks on the part of the buyer.

Very rarely, auction sales can be challenged and declared invalid. The bidding procedure of a bank or other credit institution in Moscow always complies with current legislation.

Other risks

When purchasing an apartment at a property auction, the debtor runs the risk of waiting too long to move in, since the former owners often prevent their eviction. The problem is resolved through the courts, but it is difficult to enforce.

The seller (room owner) must notify other apartment owners of his intention to sell the room. If he has not done so, any neighbor who enjoys the right of first refusal may assert his rights.

Along with the right of ownership, when purchasing an apartment with an executed rent, encumbrances on it are transferred, so the risk is high, since rent (lifetime maintenance) means periodic payments and, quite possibly, physical care for the recipient of the rent.

Selling a mortgaged apartment due to financial problems

During periods of crisis, it is not uncommon for borrowers to be unable to repay loans, resulting in late payments and contractual fines and penalties. In case of failure to fulfill obligations, the bank has the right to foreclose on the apartment that is pledged. This process is disadvantageous for the borrower, since he is left without real estate. Therefore, there is a reasonable solution - selling mortgaged apartments.

In this case, the borrower remains with the difference between the cost of housing and the loan debt, as well as a good relationship with the bank. Our agency has positive experience in agreeing with the bank on the cancellation of fines and even penalties, thanks to which the bank receives only the principal amount of the debt.

What issues need to be considered when selling foreclosed properties?

If you have to sell mortgaged apartments from banks, then you should consider two important points:

Not all buyers are ready to consider such apartments, considering them problematic. However, before accepting the property as collateral, the bank carefully checked it. Therefore, buying collateral housing does not carry any risks.
It is impossible to sell real estate that is pledged without taking into account the interests of the bank. If the potential buyer has the entire amount of funds, there will be no difficulties with the purchase. If you need a mortgage loan for a secured apartment, we will help you arrange it.

The most important issue for buyers, seller and bank is the moment at which the transfer of ownership and the removal of encumbrance are registered. We will help carry out the transaction if the seller and buyer submit a purchase and sale agreement for registration to the relevant government authorities with the removal of the collateral, or with the consent of the bank to retain the collateral, but with its subsequent removal when ownership passes to the new owner and the bank receives payment in the amount of mortgage debt.

In addition, the purchase of collateral real estate is associated with issues of payment schemes and fears that after the removal of the encumbrance from the apartment, the transfer of ownership will not be registered. In our company, the mechanism for conducting such transactions has been worked out to the smallest detail. It is best to purchase/sell collateralized apartments through a letter of credit or express safe deposit, and under conditions of access to funds, register the transfer of ownership rights to the buyer.

The advantages of purchasing collateral real estate include the following:

legal cleanliness of the apartment;
control of the bank when concluding a transaction;
opportunity to buy real estate at a favorable interest rate.

How to sell a mortgaged apartment correctly?

The scheme for selling collateralized real estate in St. Petersburg requires special attention, since, compared to a standard agreement for the purchase/sale of an apartment, in this case there is another party pursuing its own interests - the bank.

Having impressive experience, we use mutual settlement schemes that provide 100% safety for buyers, thanks to which they do not require a 20-30% discount on the price, as may be the case if risks arise. We guarantee that the seller of the collateralized property will receive the amount of the difference between the sale price and the debt on obligations after the ownership has transferred to the name of the buyer and the debt to the bank has been closed.

So, you can’t buy an apartment with collateral?

Can. And such transactions take place quite often. You can stipulate in the purchase and sale agreement that the money received from the buyer will be used to repay the loan. “Money in the morning – in the evening the encumbrance is removed and the buyer’s property rights are registered.”

In transactions with collateral real estate, it is better to contact experienced lawyers or realtors to get everything done correctly.

Will I have problems if the seller is late on loan payments?

The circumstances of selling an apartment with a mortgage may vary. Someone decided to change apartment due to the birth of children. Someone needs to move to another city, someone urgently needs a large sum of money. And some were unable or unwilling to continue paying their mortgage.

Whatever the reason for the sale, none of this will affect the buyer after the transaction. No obligations of the seller, including fines or penalties, can be transferred to him.

And more about risks: minors in a secured apartment

Transactions of this kind are carried out with the consent of the lending organization and under its control. The order is:

the buyer transfers the required amount to the bank and the seller’s loan is closed;
the creditor notifies the registration service in writing about the repayment of the obligation and the need to remove the object from collateral;
a purchase and sale agreement is concluded, the buyer’s ownership is registered in the prescribed manner;
if the purchase of real estate is carried out using credit funds, a new mortgage is registered, but in the name of the buyer.

When completing such transactions, there is a moment that “falls out of sight” of banks: the transfer of an advance or deposit. To avoid fraudulent schemes, it is recommended to transfer an advance after clarification of controversial issues.

Real estate transactions secured by Sberbank follow a scheme worked out by the bank. Read more in the article: Buying an apartment secured by Sberbank with a Sberbank mortgage

Many banks operate a Mortgage Real Estate mortgage program aimed at selling property that is burdened with debts or has become the property of the lender as a result of an unpaid mortgage. In order to save on legal costs and the cost of paying for enforcement proceedings, the bank independently searches for buyers, carries out registration, and carefully monitors the removal of encumbrances.

Buying real estate from a bank is the least risky and transparent transaction. When registering for cash, it happens as quickly as possible and with a possible discount of 5-10%. After paying for the purchase, there are no obligations to the bank. In case of insufficient funds, you can count on mortgage lending on favorable terms.

Purchasing real estate with collateral requires paying attention to one more point: there are children under the age of majority among the co-owners or among the registered residents.

Why is this happening? Purchasing an apartment using maternity capital requires further registration of children as homeowners, along with their parents. But often, bank lending is also used as a source of financing. If the borrower is unable to service the debt, it would seem that the best solution is to sell the property and pay off the debt to the bank. This can be done, provided that the interests of the children are not violated.

We list the problems that the seller has to solve additionally:

obtain the consent of the guardianship and trusteeship authority to sell the collateral;
buy or provide minors with alternative housing that meets sanitary, hygienic and living conditions, the area of which is no less than that allocated for each child in the alienated apartment.

Of course, the above difficulties fall on the seller. But their solution will take time, which increases the time frame for concluding a purchase and sale agreement.

Early loan repayment

This option is both the simplest and the most complex. The algorithm of actions in this situation is as follows:

The borrower pays off the balance of the loan in full;
The encumbrance on the apartment is removed;
The owner puts the apartment up for sale.

The difficulty here is that not everyone has the opportunity to pay off the mortgage prematurely and withdraw the apartment from the bank as collateral. If you have additional sources of income that allow you to pay off your debt much faster than the deadline, that's great! By the way, do not forget that you need to notify the bank a month in advance of your intention to repay early.

The second option of early repayment is less common, as it carries some risks for the buyer, but it also has a place. The seller receives from the buyer an amount of money equivalent to the remaining debt, closes the loan, removes the encumbrance and receives the remaining amount.

What are the purchasing options?

A collateralized apartment can be purchased both from the bank itself and from the debtor. Let's consider both options.

1. With the participation of the bank

This is the safest option. Because the bank, with the help of its accredited realtor, accompanies every stage of the transaction. When you conclude a deal, the bank issues a certificate to the notary stating that there is no debt on the loan and the encumbrance is removed from the apartment. Moreover, the bank provides you with a safe deposit box for storing funds, and when you sign the purchase and sale agreement and pay it off, ownership will be transferred to you.

We invite you to read: How to Return 13 Percent from the Purchase of an Apartment in 2020?

You can also purchase a secured apartment from a bank on credit. Banks sometimes agree to such agreements, but everything is individual. If you are solvent and have a good credit history, you can get permission from the bank and reissue the loan to yourself. There are many advantages here, because banks often offer special programs and preferential conditions in this case: a lower interest rate, a minimum down payment, a more expedited transaction procedure.

There is also the option of purchasing an apartment from a bank at an open auction. Typically, the auction announcement is posted on the bank's website. True, experts recommend first finding out whether the borrower’s consent has been obtained for the sale of this apartment and whether minor children are registered in it. Because in this case, the borrower can challenge the transaction in the future.

2. Buy from the borrower

The seller who was unable to pay the debt for the apartment must have the bank’s consent to sell the mortgaged apartment. This situation is not uncommon. The fact is that in order for the bank to sell the apartment itself, you need to go through a trial that drags on for a long time. It is much easier for both the bank and the borrower to come to an amicable agreement, according to which the borrower sells the apartment on his own and pays off the debt to the bank.

In this case, you are buying an apartment with an encumbrance, and the buyer will have to remove it. It is recommended not to make an advance payment until the apartment is released from collateral and to carry out the transaction through a safe deposit box, this way you will protect yourself from the bank’s claims in the future. Then the seller will receive the money only after the certificate of ownership without encumbrance is issued.

There is also the option of purchasing the debt from the borrower. That is, you buy an apartment along with a mortgage encumbrance. This is called "assignment of debt."

Important! It is dangerous to buy collateralized housing without the participation of the bank. Because there are a lot of scammers in this market. Therefore, carefully study the original documents, visit the bank and obtain its consent to the transaction, do not make an advance payment. They recommend that it is better to buy an apartment with an encumbrance and pay off the debt to the bank yourself, rather than entrust it to the seller and transfer the entire amount to him.

Sale of an apartment by a borrower

The most standard and widespread scheme for how to sell a mortgaged apartment. First of all, the seller must notify the bank with which he still has an existing mortgage loan of his decision. Let us immediately draw your attention to the fact that the bank, depending on the current situation, cannot always give a positive answer. However, practice shows that in most cases no problems arise.

It is important to consider the following nuances:

When drawing up a purchase and sale agreement, it is important to divide the amount received into two parts, one of which will be used to pay off the debt;
Each of the two parts is defined in the corresponding bank cells - for the bank and for the seller;
After the bank receives its share of the money, it transfers the documents necessary for the transaction to Rosreestr or the MFC, and also removes the encumbrance from the apartment and removes it from collateral.

Such transactions are absolutely safe and very common. Risks for both parties are reduced to an absolute minimum, and even if the deal falls through, the buyer will be able to return the funds. The key difficulty is finding a buyer willing to purchase an apartment that is secured by a bank. Therefore, if you need to sell real estate as quickly as possible, it is better to turn to professionals!

What are the benefits of buying a mortgaged apartment?

This method of selling housing, which serves as credit collateral, is the main one. The sale of real estate in this option occurs with the voluntary consent of the debtor and out of court (Law No. 102-FZ, Art. 55). The number of mortgage borrowers in Russia increases every year, which means such auctions will be held more and more often.

The auction procedure is standard:

the initial price of the lot is set by an independent appraiser;
The participants' deposit is 5% of the initial price;
The person who names the highest value wins.

Losers receive a 5% deposit back, and for the winner this amount is deposited into the purchase account. Typically, the initial (estimated) cost of an auction apartment is close to market prices. If its price is noticeably lower, there are some risks that participants should find out before bidding.

Note that it is almost impossible to purchase collateral real estate at a decent discount during the auction process. The bank is interested in achieving a price comparable to offers on the secondary market. In the heat of auction excitement, a lot may even turn out to be more expensive than average market prices.

We suggest you read: How to include platon in transport tax

In addition to the risk of overpaying, the winners of a collateral auction are often faced with unpleasant surprises regarding the purchased housing - the presence of properties registered in it that are impossible or difficult to remove from the register. And then it will take a lot of time for the previous tenants to vacate the apartment. Before submitting an auction application, you should find out from the registration authority (USRN, house register) the number registered in the collateral real estate and trade only on lots where there are no registered ones.

They sell apartments owned by loan defaulters who refuse to voluntarily be sold at auction. Such real estate is put up for public auction after legal proceedings (Law No. 102-FZ, Article 56 and Law No. 229-FZ, Chapter 9). Its sale takes place on websites owned by credit institutions or on specialized platforms.

Real estate confiscated with foreclosure on the mortgaged property undergoes complex bidding procedures, possible only by a court decision in favor of the credit bank's claim.

The public bidding process is approximately similar to an auction - the housing will be purchased by the participant who offers the highest price. However, if the first auction fails, for example, due to a small number of participants (Civil Code, Articles 447 and 449), at the second auction the property may be offered at a reduced price (usually by 15%). Therefore, in order to profitably purchase a mortgaged apartment at a public auction, you need to constantly monitor the auctioned lots.

The main risk of public auctions is the possible recognition of their result (the purchase and sale agreement) as invalid. This happens, for example, when participants or organizers violate trading rules in order to influence the result. Before participating in the auction, you should find out the actual legality of the sale of the real estate lot of interest by requesting documentary information from the organizers (for example, a copy of a judicial act). The second point is to be sure to study the provisions establishing the bidding procedure for compliance with the norms of the Civil Code (Article 448).

Finally, the former owner has the right to challenge the imposed property penalty within a three-year period (Civil Code, Art. 196). If the complaint is satisfied by the court, a citizen who purchased an apartment at a public auction and is a bona fide buyer will be obliged to return the mortgaged property to the previous owner.

The “pitfall” will be the impossibility of personally inspecting legally confiscated housing sold at auction before the actual purchase. The inspection service is not provided by mortgagees (any), especially by bailiffs. Only external inspection is available - the facade of the house, its entrance. You can also find out information about the time the housing was built, about construction materials, and communicate with the residents.

If the sale of confiscated real estate at auction is unsuccessful, credit banks post data on apartments on their own official websites. Banks usually call the average market price. For each real estate confiscation, the bank guarantees legal purity and full transparency of the transaction.

However, the bank’s primary goal is to sell the collateral property as quickly as possible to allow the organization to pay off the debt with minimal losses. And if the bank fails to sell the apartment at market prices within a certain period of time (usually up to one and a half months), it will strive to sell such property cheaper.

Banks even offer favorable (low interest rate) loans or free settlement letters of credit to buyers purchasing properties from their collateral bases.

Purchasing an apartment from the online storefront of a credit institution involves minimal risks for the buyer. But you cannot blindly trust the information about the past owners of the property (its legal history) provided by the bank to the potential buyer - this organization is not obliged to inform those interested in the purchase about all the circumstances regarding the mortgaged property.

As with public auctions, it is impossible for interested buyers to personally inspect apartments offered on online bank display windows. You have to rely on the data reported by the bank service and on the external inspection of the residential building.

The owner of an encumbered apartment, previously purchased with funds loaned by the bank, if there are difficulties with mortgage payments, has the full right to independently sell the property and pay off the remaining debt. Banks cannot sell collateral that is private property, i.e.

Both the credit institution and the borrower are interested in closing the debt to the bank. When selling residential real estate (collateral) to the buyer, the debtor carries out the transaction with a purchase and sale agreement, settles with the bank and receives a documented removal of the encumbrance confirmed by the lender. Thus, the buyer gets the apartment, the bank gets the money, and the previous owner of the apartment (recipient of the bank loan) is completely relieved of the loan obligations.

The advantage of the option of purchasing mortgaged (collateralized) housing from the borrower directly is the complete availability of the apartment for inspection and technical analysis by invited specialists, i.e. for an informed purchase. In addition, the borrower is definitely interested in a quick sale in order to receive a sum of money to cover the loan debt, which means he will agree to slightly reduce the price.

We invite you to familiarize yourself with: Sample objection to a court order of a magistrate: rules for filing

On the other hand, re-registration of ownership of real estate by the buyer is permissible only after the seller (mortgage borrower) has repaid the bank debt, otherwise the bank will not remove the encumbrance and Rosreestr will not carry out the registration. But the debtor, having paid the amount owed to the bank, may refuse to transfer the apartment to the buyer.

As a result, a potentially profitable purchase of a home may result in a lengthy legal battle, during which the buyer will not be able to use the funds spent on the purchase of the mortgaged apartment. To protect himself when purchasing encumbered real estate, the buyer should insist on the conclusion

(banking organization).

“This is quite profitable, given the fact that banks are trying to get rid of non-core assets as quickly as possible. Banks are not professional players in the real estate market, and given that they received it as collateral for an unpaid loan, they are faced with the task of selling the apartment as quickly as possible and returning the money to circulation.

“Buying a mortgaged apartment means buying 100% verified housing from a bona fide seller. From the buyer's point of view, there will be significantly fewer pitfalls in this transaction than, for example, when buying from a private person. The price of such an apartment is unlikely to be much lower than the market. However, many banks offer preferential rates for the purchase of collateralized housing with a mortgage,” commented the press service of DeltaCredit Bank.

Absolut Bank has a special program “Profitable Mortgage”, under which the rate is 1 percentage point lower than the standard programs operating at the bank, said Ivan Lyubimenko, director of the sales department of Absolut Bank network units.

“Under the terms of the program, such a loan can be provided in several cases. Firstly, for the purchase of real estate from a mortgage borrower of the bank, who, after coordinating his decision with the bank, for some reason decided to sell his mortgaged apartment. Secondly, a loan on special terms is provided for the purchase of real estate that has become the property of the bank on the basis of a court decision or compensation agreement.

Finally, on a property for which the rights of the mortgagee have been transferred to the bank. Therefore, if a client plans to purchase a home on credit and has not yet selected a property to purchase, then it makes sense to familiarize yourself with the bank’s offer. In this case, he will be able to at least save on paying interest on the loan,” he explains.

Change of borrower

Another simple way to sell an apartment as collateral from the bank. It is relevant for those cases when the buyer does not have the opportunity to pay the entire amount at once. The buyer pays the seller the difference between the balance of the debt and the cost of the apartment and assumes the rights of the borrower while continuing to repay the debt to the financial institution.

Despite the fact that transactions involving a change of borrower are quite common, the bank may not agree to it. First of all, the lender will check the new borrower and, if he seems insolvent, then refusal cannot be avoided.

Another nuance is the possible refinancing of the rate for a new borrower. The conditions with the new interest rate may not always be favorable for the buyer of the apartment.

How do electronic auctions of apartments work?

Trades and auctions of residential real estate are no different from the same auctions of any other non-residential commercial and industrial properties. The stages of bidding are the same and are regulated in our case by Law 127 Federal Law as amended in 2018. The first ones are carried out at the market price. Next, the second stage is to reduce the cost and offer the confiscated apartments below the market according to a pre-approved price reduction schedule. And the third stage is holding a public auction, where the cost is the lowest. You can enter the auction as our customer at any stage; do not forget to coordinate this step with our specialists. Purchase of confiscated apartments of mortgage debtors.

There are always enough residential properties in circulation that are put up for auction for non-payment of mortgages. Legally, such an apartment belongs to the bank, and it is not difficult to write out debtors in any number. In such a sale, first the debt to the bank is repaid from the received funds, the remaining part of the money goes to the debtor and his creditors according to shares. After the transfer of ownership, the encumbrance is removed. The whole procedure takes a month, or at most two. Next, the owner, at his own discretion, disposes of the purchased housing.

If the apartment is confiscated, but not mortgaged, investtorgi.ru specialists strongly recommend checking the cleanliness of the lot. In this case, there are a number of pitfalls that can significantly complicate the owner’s future life. Pay special attention to the registration of minors, dependent people, disabled people, etc.

Sources

https://www.vbr.ru/banki/sberbank-rossii/help/sberbank-nedvizhimost/
https://1Quality.ru/blog/50-sekretnyh-stranits-bankov-s-zalogovoy-nedvijimostiu
https://konfiskator.com/vse-konfiskovannye-i-zalogovye-kvartiry_gorod-federalnogo-znacheniya-moskva__kf
https://prodam-kuplyu-kvartiru.ru/articles/prodazha-kvartir/prodazha-zalogovyh-kvartir-ot-bankov-v-moskve-2/
https://piaspb.ru/forpartners/zalogovaya-nedvizhimost/
https://blog.DomClick.ru/post/kvartira-v-zaloge-u-banka-mozhno-li-ee-kupit
https://www.vincent-realty.ru/articles/mozhno-li-prodat-kvartiru-v-zaloge-i-chto-dlya-etogo-nuzhno/
https://capitalan.ru/services/srochniy-vikup/vikup-kvartir-iz-pod-zaloga/
https://InvestTorgi.ru/catalog/kvartiry_s_torgov_i_auktsionov/

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Pros and cons of buying a foreclosed apartment

The seizure of property occurs for the debts of the owner to one or another institution, upon the latter’s appeal to the courts. As for apartments, the debt most often arises for an outstanding mortgage loan to the bank. But there are other cases of debt. When arresting, a mandatory condition is that the apartment is pledged.

And when debts are systematically not paid, but only grow and grow, multiplying with interest, penalties and penalties, the creditor turns to the courts. And after the court decision, the bailiffs describe the debtor’s property, and then this property is seized for the purpose of further sale.

Buying a seized apartment is attractive because it has a fairly low price compared to the current market price, since the most important thing when selling is to pay off all debts, and not to profit from this operation. Many are tempted by the price, as well as the “transparency” of the history of the apartment if it is seized for mortgage debts. After all, before approving a mortgage loan, the bank carefully checked everything. But is everything really that smooth {q}

It is not possible to view the apartment before purchasing. This service is not provided by banks or other mortgage holders, much less bailiffs. You can be content with only the address, floor, number of meters and rooms. You have to evaluate an apartment only by external signs - you can look at the house (what material it is made of, what year it was built, etc.), the condition of the entrance, talk with the neighbors. But it’s impossible to see what the atmosphere is like inside, what kind of repairs there are, the condition of the sewage system, etc. On the other hand, most often, apartments are put up for auction for non-payment of mortgages, and mortgages in most cases are given for new buildings.
Trouble created by former residents who may not agree with the court's decision. And therefore they can knock on the threshold of this apartment, threaten, etc. Needless to say, the very aura in the apartment from which people were evicted (no matter for what reason) is not the most pleasant. The worst thing is that the debtor can appeal to higher authorities against the decision made by the court, and the result may be positive for him. This means there will be new trials.
Additional difficulties with apartment decoration. As a rule, the buyer will be responsible for removing the encumbrance from the acquired property. This means time, inconvenience, and additional costs.

The sale of property is carried out by the debtor himself, in agreement with the bank. In this case, the cost of the apartment will be no different from other real estate options - after all, you need to sell the apartment to the owner for the maximum possible amount in order to pay off the debts and have something left over. The debtor sells it at a reduced price only when deadlines are running out (and the bank gives only 3 months for the sale), or when the buyer does not agree, citing possible problems associated with the encumbrance of the property, which will still have to be removed.
The sale of the apartment is carried out by the bank through duly accredited real estate agencies. The banking institution itself does not have the right to sell property. The price of an apartment depends on the realtor, who can sell it at either a low or high price. Since the bank, in principle, does not care - it does not receive any profits, it is important for it to pay off all the debtor’s existing debts. The scheme of the transaction is as follows: the bank concludes an agreement with the debtor on the transfer of rights to the apartment, then it is sold, all debts are repaid, and the remainder is returned to the former owner of the apartment. The bank can sell the collateral to a new client who has applied for a mortgage and give him a reduced rate on this loan.
Open bidding. They are carried out in relation to an already seized apartment, by court decision. That is, when the bank applied to the courts to collect debts.

The sale of the seized apartment must be carried out at an open auction, where the buyer is chosen by the one who names the highest price. Such auctions are carried out only by a specialized institution; bailiffs do not organize such events. The sale of an apartment in this way must be carried out within 2 months, starting from the date of arrest.

The list of seized property can be found on the website of the Federal Bailiff Service, by region. The address of the specific object and some of its characteristics will be indicated there - square footage, number of rooms, floor, etc. Following the law, the bailiff department sets the initial price at which a specific apartment is sold.

Bidding will take place if more than 2 potential buyers participate in it and their offers include a premium to the original cost. Otherwise, the auction is declared invalid. They can be re-assigned, but with the starting price already reduced by 15%, which the mortgagee asks the court to do, which sets a new price. At the second auction there is just a chance to buy an apartment very cheaply.

Before entering the auction, you must first become a participant. Therefore, you will have to perform several actions - a suitable apartment is selected on the FSSP website (the size of its deposit is also indicated here), an agreement is concluded directly with the seller regarding the deposit, this deposit is paid. All losing bidders will receive their deposit back in full. But if the buyer wins the auction, but refuses to purchase it, then in this case he loses the deposit.

Application for participation in the prescribed form.
Confirmation of payment of the deposit for the apartment - payment documents with bank marks.
Identity documents.
A list of all documents, indicating the date and time of receipt of the application for participation in the auction.
An envelope containing the proposed sale amount - not lower than the starting price. The envelope must be properly sealed.

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After this, a special commission, on the appointed day of registration of bidders, checks all submitted documents. And the admission or non-admission of a specific applicant to the ongoing auction is carried out. Participation may be refused for several reasons - inconsistency or lack of any documents. All this is documented in a protocol. If the applicant is admitted to the auction, he becomes a participant.

The auction is scheduled for a specific day on which all registered participants must appear. The one who has the highest price for the apartment in the envelope receives the right to purchase it for this price. The deposit paid is, of course, taken into account.

On the same day, the winner and the organizer of the event sign a protocol on the results. This document replaces the contract and has all its rights.

But there is also a dangerous point in conducting auctions - in the future they may be declared invalid. In the event that some rules were violated and some procedures for their implementation were not followed. “Invalidity” is recognized only by a decision of the court, which considers the statement of claim filed by the person interested in it.