What to do if you can't pay your mortgage

General action plan

In general, the further actions of the homeowner after paying off the entire mortgage amount are as follows:

1. Submit an application to the bank to remove the encumbrance on the apartment.
2. The bank makes a note in the apartment mortgage that you have paid off the mortgage in full. The timing of this stage depends on the specific credit institution.
3. You receive a stamped mortgage note and other necessary documents from the bank.
4. Provide a package of documents to the local office of Rosreestr.
5. Rosreestr cancels the mortgage registration record and enters new information into the Unified State Register of Real Estate. This usually happens within three business days.
6. You receive an extract from the Unified State Register indicating the repayment of the mortgage registration record.

Sometimes banks can issue mortgages without a mortgage. In this case, the credit institution and the property owner submit a joint application to Rosreestr to repay the mortgage record. If you have just such a loan, coordinate all your actions to re-register an apartment with your bank.

If there are several apartment owners (for example, a husband, wife and son), then everyone must submit applications. Or one person can take care of the issue, having received a notarized power of attorney from the other co-owners.

Please note that since mid-2020, certificates of ownership of apartments have not been issued in Russia. Now an extract from the Unified State Register, which is printed on a regular sheet of A4 paper, is enough.

Time frames and costs for removing the encumbrance

Regardless of the method of contacting the State Register, the borrower does not pay any additional fees. There is no fee charged for removing the encumbrance. Therefore, you do not need to attach any receipts to your application.

The actual removal of the burden occurs very quickly. The authorities are required to do this within 5 days. As a result, a record of the removal of the encumbrance is made by the institution’s specialists in the Unified State Register. The person receives a certificate of registration of his rights to the apartment, submitted to the State Register, back. It has the same number and date of issue. The only change concerns the presence of a note about the removal of the encumbrance - it is placed on the back of the document.

How to contact Rosreestr

You can submit documents to Rosreestr as follows:

• personally contact the offices of the Federal Cadastral Chamber (FKP Rosreestr);
• personally contact the multifunctional center (MFC);
• through the electronic service on the Rosreestr website.

At FKP Rosreestr branches, people often face the need to wait in queues for a long time. If an electronic queue is provided, then the problem becomes the queue for the coupon. Often people arrive early and then have to wait for their time.

It is possible to make an appointment at FKP Rosreestr in advance. To do this, you need to register on the State Services portal, and with the same password and login log into your personal account on the Rosreestr website. In the menu, find “Make an appointment” and select the desired department and available time.

As a rule, submitting and receiving documents through the MFC is easier and more convenient. But you will have to wait a couple of days longer for ready-made documents.

Renting an apartment

This option is usually used by those borrowers who have another home or have the opportunity to move in with relatives. Some do things more radically. For example, if the apartment has a good area, renovation and is located in a prestigious area, then it can be rented out at a profit. The borrower himself rents economy-class housing for his stay, and pays the difference to repay the loan.

But it is worth remembering that you must obtain permission from the bank to transfer real estate for rent . This can only be avoided if the contract with the tenant is concluded for a period of less than a year, since it does not need to be registered with Rosreestr.

Remote application submission

Now let’s learn more about how to re-register an apartment remotely. To use this service, you must have an electronic digital signature (EDS). This is an analogue of a regular handwritten signature, which is used for electronic document management.

You can purchase an electronic signature certificate from a special organization - a certification center. Thus, such a center operates under the jurisdiction of Rosreestr FKP. You must also have special software installed on your computer.

If you have an electronic signature, then you can use your personal account on the Rosreestr website to submit an application to remove the encumbrance from the apartment. Or on this site, select from the menu: “State - “Registration of termination of rights, restrictions (encumbrances) of rights” - “Repayment of the mortgage registration record.”

Next, carefully fill out all the required fields:

• Enter personal information: full name, passport details, SNILS, address, phone number, contact details;
• Provide information about the apartment: type of object, cadastral number, address, date and state registration number of the mortgage;
• Upload the required documents in electronic format;
• Confirm your actions with an electronic signature.

If everything is in order with the application and documents, an extract from the Unified State Register will be sent to you by email in a few days.

Questions and answers

My husband and I took out a mortgage 7 years ago. We have one child. The mortgage is in my name. The husband is a co-borrower, but he stopped paying, he took a mistress, he drinks, he goes on walks. I can’t make payments on my own, there are arrears. What to do?

Get a divorce, sell the apartment, prove in court that he did not fulfill his obligations. Pay off your debt and buy a home for a little less. But before all this, be sure to contact the bank in writing and describe the situation with evidence.

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It's been six months since I have any money to pay my mortgage. The bank was silent, and now it turns out that they have already filed a lawsuit against us. What to do to avoid being left without an apartment?

Firstly, it’s not clear what you were hoping for during these six months of delays? What will the bank forget about your debt? This is impossible. Now, you need to contact this bank to ask for refinancing and justify your deplorable financial situation in pre-trial proceedings. Absolutely clearly determine the month when you can restore material balance. Ask for a deferment of fines so that you can pay the mortgage. And at this time, urgently resolve the issue of work and your income.

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What happens if I don’t repay my bank loan? What will they do to me?

Article 177 of the Criminal Code will be “Malicious evasion of repayment of accounts payable.” The minimum penalty is a fine of up to 200 thousand rubles. and 480 hours of community service, and you can get a maximum of 2 years in prison. The choice is yours.

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Lawyers' answers (1)

Once the mortgage is paid off, the encumbrance is not automatically removed. In order to remove all restrictions from housing, the borrower will need to independently agree on all issues with the bank and then the state registrar. Before you make your final loan payment, you should request a loan statement from your lender. This is necessary in order to pay off the entire amount of debt without a balance. It often happens that the balance amount announced by the bank manager is incomplete (does not include any mandatory payments or commission). During repayment, the borrower, as a rule, is not informed about the account balance, and may even be issued a certificate of closure of the debt. However, after some time it turns out that the client owed several tens of rubles, for which a fine and penalty were then charged. Thus, a new amount of debt is formed, which can be quite noticeable after a long time. A statement of your credit account will protect you from such troubles, since you will be able to repay exactly the amount that you owe, taking into account all possible payments. After you close the loan, you will need to receive a letter from the bank stating that all obligations on the loan have been repaid and the bank no longer has any claims against you. In addition to the letter, it makes sense to re-order an account statement so that there is evidence of debt closure if any controversial issues arise. You will need a letter to officially remove the encumbrance on your home in the state register. Each region has its own Rosreestr Office, where state registration is carried out and, accordingly, the removal of encumbrances from real estate. The borrower will need to independently provide a number of documents to acquire full ownership of the home.

Documents after repayment of the mortgage In accordance with Art. 17. Federal Law “On Mortgages”, after paying the entire amount of the debt on the loan, the bank is obliged to issue the mortgage to the borrower with a note stating that the obligations on it have been fulfilled in full. To remove the encumbrance from real estate, the following documents will need to be submitted to the regional office of Rosreestr: an application in the established form on behalf of the borrower with a request to remove the encumbrance; notarized copies of the lender's statutory documents; a document confirming the borrower's ownership of housing; a mortgage note from a bank with a note indicating the repayment of obligations; a letter from the bank confirming repayment of the entire debt amount. If a mortgage was not issued when receiving a loan, instead of a letter from the bank and a mortgage note with a note, a joint application of the borrower and the lender is submitted to Rosreestr, on the basis of which the encumbrance will be lifted.

Selling an apartment

The most radical method of solving the problem is to sell the mortgaged apartment. The borrower can completely get rid of the debt in this way and perhaps he will have some of the funds left. But this method has many disadvantages.

• Firstly, the borrower loses the home he spent time and money buying. He can return what was spent on the down payment and on the principal payment. But he most likely will not return the costs associated with paying for insurance, commissions, and interest.
• Secondly, you need to obtain permission from the bank.
• Thirdly, not all buyers are ready to buy an apartment that is pledged to the bank, since it is necessary to first transfer money and only then register ownership. Because of this, the borrower is often forced to sell the apartment at a price below the market price, which means additional losses. But in some cases, this is the only reasonable way out of the situation, especially when the loss of work occurred in the first year of paying off the mortgage, and the borrower has not yet had time to pay the bank a large amount of interest.

Delaying the decision may result in the bank forcibly selling the collateral. At the same time, the price will be significantly lower, and penalties and expenses associated with forced sale will be additionally written off from the proceeds. As a result, the borrower may not have any funds left from the sale.

How to register ownership of an apartment after paying off the mortgage

Registration of ownership of the apartment after repayment of the mortgage is mandatory, as it will allow full disposal of the purchased housing.

When a family purchases a home through a mortgage, paying the last payment becomes an event. But in reality, it doesn't end there. An important procedure after paying off a mortgage loan is to remove the restriction on the purchased home.

Why do you need to re-register an apartment after paying off the mortgage?

The practice of Russian banks shows that issuing a mortgage loan always means providing a new apartment as collateral. This is how financial institutions insure themselves against possible risks. The mortgaged property has an encumbrance that does not allow free disposal of the apartment - it cannot be sold, rented out, or added another tenant without the bank’s knowledge.

After full payment of the debt to the bank, the borrower automatically ceases to be a debtor, which means that the encumbrance on his property is removed. But this still needs to be reported to higher authorities. Moreover, this will be done by the client himself, and not by the bank where he was given a mortgage, in most cases.

Mortgage repayment

Payment of the mortgage loan occurs strictly according to schedule. But the borrower also has the opportunity to repay the borrowed funds ahead of schedule. In order to make an early repayment, you must inform the bank of your intention through a written statement.

But before making a payment, it is worth finding out the final amount that is needed to repay the loan debt. To do this, you need to go to the bank and request a statement. You can also do this without leaving your home by calling the financial institution where the mortgage was taken out.

When the last payment has been made, the client needs to take a certificate that will confirm the absence of debt. This document is not mandatory, so not everyone takes it. But there are times when such a certificate may be needed, so it’s better to be safe. Depending on the bank, they may issue it for a fee or for free.

But in any case, the document provided must contain the following information:

• Full name of the client who took out the loan;
• contract data, as well as the final date for repayment of the mortgage loan;
• personal details;
• status of the bank employee who issued the document;
• confirmation that the institution has no claims against the client.

IMPORTANT . Do not forget that not all banking institutions automatically close the loan account. This is also worth taking care of so that there are no additional claims and debt growth in the future.

Credit holidays

If there are not enough funds to pay off regular payments, then, first of all, you should not avoid communicating with bank employees. It is better to take the initiative and contact the lender yourself, explain the situation and provide supporting documents, for example, an employment record with the corresponding record.

The lender may well step in and offer the borrower a credit holiday. But you need to understand that credit holidays do not mean that the bank allows you not to pay monthly payments for several months. Most banks allow, for example, in the next six months not to pay funds that, according to the schedule, should be used to repay the principal debt. In this case, interest must be paid in the same amount .

If the schedule is annuity and the problem with employment arose in the first few years of the mortgage, then such a vacation may not solve the problem. The payment will decrease insignificantly and after the end of the credit holiday, the payment will increase even more compared to the original amount. Based on this, it is worth carefully studying such an offer from the bank.

We remove the encumbrance from the apartment after full payment of the mortgage

Article updated: October 14, 2020
Hello. On this page I have published instructions on how to remove encumbrances from an apartment after paying off the mortgage. The instructions may be slightly different in your case, because each bank has its own regulations. Some banks themselves submit an application for removal of the encumbrance, others issue a power of attorney for the borrowers so that the borrowers themselves submit the application. For example, Sberbank itself submits an application, and the encumbrance will be removed within 1 - 2 months after the mortgage is repaid. To do this, you just need to send an application on the DomClick website from Sberbank.

If you need free legal advice, you can write online to a lawyer at the bottom right at any time, you can order a call at the bottom left, or call yourself (Moscow and the region); 8 (St. Petersburg and region); (all regions of the Russian Federation).

Stage No. 1 - we pick up a mortgage repayment certificate and a mortgage note from the bank

Only the borrower or co-borrower can receive a certificate and mortgage. They are issued free of charge.

Mortgage repayment certificate

It is enough to bring your passport and loan agreement. You can also issue a certificate through the bank’s mobile application. For example, Alfa-Bank and VTB24 will send it by email. But it is better to order a certificate from a bank branch in order to write an application for a mortgage there.

Most banks issue a certificate immediately upon application, within a maximum of 3 days. VTB24 has distinguished itself - its certificate is issued within 14 days. This is indicated in the official tariffs.

There is no general sample certificate; each bank has its own. Do not confuse this certificate with a certificate of account closure.

Mortgage

Immediately after receiving the mortgage repayment certificate, you can apply for a mortgage. The bank specialist will fill out the application himself; the borrower only needs to sign it.

The term for obtaining a mortgage is from 2 weeks to 2 months. Why so long? The mortgage note is usually held in a depository rather than at a bank branch. Therefore, a lot of time is spent sending and receiving this document.

Typically, when the mortgage is ready, the borrower is notified via SMS. The mortgage must be stamped and recorded that the mortgage has been fully repaid. Additionally, a power of attorney will be issued to the borrower to remove the encumbrance.

In some cases, when taking out a mortgage, a mortgage is not issued. This is when an apartment was purchased in a new building under an agreement of shared participation, assignment or housing cooperative and the borrower paid off the mortgage before registering ownership of the apartment. Then it is enough to obtain a certificate of mortgage repayment. But you need to submit an application for removal of the encumbrance together with a bank representative. The office will give you his contact information. Usually the representative is free only on certain days and goes to the MFC that is convenient for him. We'll have to adapt to it.

Sometimes the mortgage is lost. What to do about it?

All banks are guilty of this, especially Sberbank and VTB24. One of my clients couldn’t find a mortgage for 5 months.

If the mortgage is not repaid for a long time, I advise you to leave a review in “People’s e” of the Banki.Ru website. In your review, be sure to indicate the number of the loan agreement with the date of execution. This helps many people - often after a revocation, managers find a mortgage and notify borrowers about it.

Stage No. 2 - we go to the MFC or Registration Chamber to remove the encumbrance

The service is called repayment of the mortgage registration record - Art. 25 of the Federal Mortgage Law. The service is free, there is no state fee.

Since 2020, in many cities it is possible to submit documents only to the MFC (Multifunctional). The Registration Chambers no longer accept citizens directly. If there is no MFC in your locality, then contact the Registration Chamber.

Both in the MFC and in the Registration Chamber, documents are submitted in the same way. But in the instructions I wrote about MFC. This is a more common case.

Only those who were indicated in the mortgage registration application apply to the MFC. Usually it was submitted by the borrower and co-borrower when registering the purchase and sale transaction of an apartment.

Previously, a bank representative also contacted the MFC together with the borrower/co-borrower. Most banks now simply issue a power of attorney and a representative is no longer needed. If the mortgage has not been issued, then the presence of a bank representative is required. I wrote about this above.

1. The borrower and co-borrower must submit the following documents:
   Your passports;
2. Mortgage for an apartment;
3. Certificate of mortgage repayment;
4. Mortgage agreement;
5. Power of attorney to submit an application from the bank. It is issued along with the mortgage;
6. If there is a proxy, then his passport and notarized power of attorney. The principal's passport is not needed.
7. The employee himself will draw up an application , which the borrower and co-borrower need to check and sign. Then everyone will be given a receipt/inventory of receipt of documents. He will also give back your passports and take away the rest of the documents.
8. The documents are sent to the Registration Chamber. If everything is in order, the registrar will remove the encumbrance entry in the Unified State Register .
   According to the law, the period for removing the encumbrance is 3 working days (Clause 1, Article 25 of the Mortgage Law). But the deadline is considered when the documents from the MFC are sent to the Registration Chamber. Therefore, it is worth adding a couple more days for shipping there and back. The receipt will indicate a telephone number by which you can find out about the status of the service.
9. On the appointed day, the borrower and co-borrower must pick up previously submitted documents and a written notification of the removal of the encumbrance from the MFC. Have your passports and receipts with you.

Source: https://prozhivem.com/kvartira/drugoe/kak-snyat-obremenenie-posle-vyplaty-ipoteki

New certificate of ownership or extract from the Unified State Register?

When signing a contract for the purchase and sale of mortgaged real estate, a note is made in the certificate of ownership that the property is under an encumbrance. After all restrictions are lifted, the document was subject to replacement until 2020.

Since July 15, 2016, when registering ownership of real estate, instead of a certificate, an extract from the Unified State Register is issued. The document contains all relevant information about the property at the time the certificate was issued: its characteristics, owner details, registered ownership, encumbrance (if any). The extract can be obtained free of charge only once.

Repeated certificates of ownership are also not being issued now. If a previously issued certificate is lost, the characteristics of the object, the owner's name are changed, or an encumbrance (mortgage, arrest) is removed, the copyright holder can receive an extract for a fee.

Before visiting the registration chamber, you must pay a state fee (200 rubles) - otherwise the application will not be accepted. It takes up to two weeks to issue the document. The list of paid services of the bank may also include the preparation of documents for the removal of encumbrances. In such cases, bank employees will settle all formalities themselves.