Periodic delays on a mortgage are normal, given the number of years for which such a loan is taken out. During this time, different things happen: illness, job loss, salary delays, etc. But every borrower needs to know the consequences and what to do - 9,000 in case of arrears on the mortgage can be the decisive amount for the bank to request a full repayment of the debt.
Is it bad to be 1 day late?
Its consequences depend on the specific bank and the terms of the agreement. Some companies allow deadlines to be missed by up to five days. If there is a penalty for 1 day of mortgage delay, it will be as follows:
- Penalty in the amount of 0.1 to 3% of the debt amount.
- Sending information to the Credit History Bureau.
Often it all ends with a small fine and a reminder to make the next payment. Or the borrower avoids such sanctions if the delay occurred due to the fault of the bank or for reasons beyond its control.
So, if you are late in paying your mortgage due to a malfunction in the financial institution, or the payment date fell on a weekend, and it was not possible to deposit funds earlier, the situation is limited to sending information to the BKI and an explanatory note. Longer schedule disruptions will have serious consequences.
Reasons for delay
Late repayment of a loan is due to various circumstances. The most common reason for late payments is the deterioration of the family's financial situation. People often lose their jobs and additional sources of income. Someone experiences force majeure circumstances that require significant expenses (wedding, funeral, expensive surgery, etc.).
Some borrowers do not have proper financial self-discipline. They put off making the mortgage payment until the last minute, and sometimes even forget to make it altogether. It is better for such borrowers to use an electronic organizer that reminds them in advance of all current payments.
The mortgage is repaid in the following ways:
- Depositing cash into the bank's cash desk;
- Non-cash transfers from a bank account;
- Automatic debiting of funds from the salary account (carried out on the basis of an application from an employee of the enterprise);
- Payment of mortgages through ATMs and information and payment terminals;
- Debiting funds from a plastic card.
Certain groups of borrowers plan various fraudulent schemes in advance and avoid repaying their loan debt. They hope for luck, not thinking that any criminal activity will end in prison. The problem may be due to a technical failure or staff negligence. In this case, you need to collect the receipts received and contact the head of the bank branch.
How will missing a payment affect your credit history (30, 60 and 90 days)
According to federal law (), any bank issuing loans is required to cooperate with BKI and transmit here information about the borrower’s violations. The deadline for sending information is clearly limited: no more than five days from the moment the mortgage payment was late. Even if the delay does not exceed one day, within the next five working days the bank is obliged to send information about this to the BKI.
There are two options for missing deadlines: active and historical.
- in the first case, we are talking about outstanding arrears that are still valid.
- secondly, about non-payments that occurred earlier.
If there is a slight delay in the bank's mortgage (up to 30 days), this will not greatly affect the approval of loans in the future. The most dangerous are absences of 90 days or more. If there are any, loan applications will be denied for several years. But you still need to learn to determine when deadlines are missed.
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In any case, it is better to check your credit history.
Level of overdue mortgage debt
| Total mortgage portfolio, million rubles. | Volume of overdue debt on mortgage loans, million rubles. | Share of overdue debt in the mortgage portfolio,% | Average size of a ruble mortgage loan, million rubles. | |
| 01.03.2014 | 2 746 088 | 41 119 | 1,50% | 1,68 |
| 01.03.2015 | 3 565 091 | 49 141 | 1,38% | 1,63 |
| 01.03.2016 | 4 069 419 | 70 573 | 1,73% | 1,74 |
| 01.03.2017 | 4 495 875 | 70 275 | 1,56% | 1,78 |
| 01.03.2018 | 5 310 259 | 69 882 | 1,32% | 1,92 |
| 01.03.2019 | 6 632 276 | 73 261 | 1,10% | 2,16 |
| 01.03.2020 | 7 654 499 | 73 960 | 0,97% | 2,45 |
Table: Expert RA calculations according to Bank of Russia data
How to calculate 90 days overdue
To determine from what day the counting is carried out, you need to study. If the borrower is 90 days late on the mortgage, there are two options:
- Missing one payment for up to three months from the date of its payment according to the schedule.
- Or several facts of payment in violation of deadlines, the amount of which reached 90 days within six months.
The method of calculation is determined based on the situation. But any missed payments are counted for the last 180 days. Another question arises: how to count 90 days of arrears on a mortgage if the borrower has several contracts. In this case, the facts of non-payment are summarized for each of them for six months. If there is only one agreement with the bank, the period of violation of deadlines is determined based on its provisions and schedule.
Paying off a mortgage during a divorce
One of the reasons for problems with paying a mortgage is divorce, due to which spouses have to divide not only property, but also debts. There can be many options here - it all depends on who purchased the property and at what stage:
- If spouses are co-borrowers and do not wish to renegotiate the agreement, each of them is liable for the debt. When one ignores them, the load is transferred to the other. But subsequently you can demand compensation from the defaulter;
- If one of the spouses took ownership of the housing, then when it is withdrawn for sale at auction, the second one must receive the due share. Moreover, he can even pay off the debt of the defaulter and take the property for himself;
- If an apartment was purchased with funds received as a gift or inheritance by one of the spouses, it is his personal property. Accordingly, in the event of bankruptcy of a second family member, it cannot be seized and put up for auction;
- If co-borrowers are unable to pay the mortgage, the best option would be to sell the apartment according to one of the above schemes. After this, you need to repay the remaining part of the loan and divide the remaining amount among yourself;
- If the spouses refuse to find a compromise and allow more than three delays in a year, the bank initiates legal proceedings and confiscates the home for sale at auction. The money remaining after repaying the debt is given to the spouses.
Are there late fees?
This should be clearly stated in the loan agreement. Not only the amount of penalties is indicated, but also the conditions for their accrual. The standard agreement has such a clause, and penalties for late mortgages are charged for each day a payment is missed. The size of the sanctions also depends on the bank. It is specified in the agreement. On average, for violation of deadlines you have to pay from 0.1% to 3% of the outstanding payments.
But you should carefully read the terms of the contract. If there is a delay in the mortgage, a penalty will be charged on the amount of the unpaid payment. Many creditors practice increasing the fine as the time of non-payment increases. If you have to pay 0.1% on the first day, then after a month this amount will increase to 2-3% per day. Some companies charge interest not on the missed payment, but on the total loan amount. In this case, it is better to avoid delays.
Mortgage holidays
Mortgage holidays, or deferment of monthly payments, are more often used in case of arrears. The bank either temporarily cancels payments to the borrower for a period of no more than three months, although this scheme is rarely resorted to, or reduces the amount of monthly payments, so that the borrower pays either only interest on the loan or only the principal amount of the debt. Typically, installment plans in the form of reduced payments are provided for a period of six months to a year.
Mortgage refinancing
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What to expect from the bank when you miss a payment
There are standard procedures carried out in case of violation of loan payment deadlines. Much of the implementation of such measures depends on the period of non-payment. Let's take a point-by-point look at what the bank does when a mortgage is overdue.
- At the first stage, the debtor is notified of the violation. This could be a call or an email.
- Penalties and penalties are assessed. Typically, such a measure is effective from the day following the delay.
- The case is then transferred to the security department. The debtor is scheduled for a personal meeting where possible solutions to the problem are discussed.
- Mortgage arrears affect your credit history. Information about the violation is sent to the BKI within five days.
- If none of the actions bring results, the bank files a lawsuit (). As a result, the housing is sold at auction, and the funds are used to pay off the debt.
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Extreme measures are used in case of really serious violations of deadlines, and if the borrower does not make contact. Most often, the bank offers restructuring or refinancing to ease the client's financial burden. Understanding the dangers of mortgage arrears, you should be careful about fulfilling your obligations under the contract. If this occurs, it is better to contact the lender yourself.
What to do if you have nothing to pay your mortgage at Sberbank
If such a life situation has arisen, as a result of which there is no money to pay the mortgage, it is recommended to take one of the following measures:
- Restructuring. The best way out of a difficult financial problem may be to change the terms of debt servicing. The bank may provide the debtor with one of the following restructuring options: Credit holidays - providing a period during which the debtor has the right not to make payments on the loan;
- Installment payment – reducing the amount of monthly payments by increasing the term of the contract.
- You can also ask the bank for a Temporary suspension or cancellation of penalties;
- Changes in mortgage interest rates;
- Changing the loan currency.
- Reducing the interest rate;
It is important to know! Before selling an apartment, you must obtain permission from the bank.
Why was there a delay on a military mortgage?
The peculiarity of this type of lending is that funds for the purchase of real estate are allocated from the federal budget, and payments are made by Rosvoenipoteka (). Despite government guarantees, military personnel also encounter problems with non-payment of loan payments. There are arrears on a military mortgage in two cases:
- Lack of indexation of savings according to the NIS.
- Dismissal from the borrower's service.
If savings are not indexed, after updating the payment schedule, a debt may arise. As a rule, a serviceman learns about it after dismissal or the end of the loan term. Usually there is no indexation when there is a crisis in the country, like the one that happened in 2014-16. Currently, measures have been taken to prevent such situations.
The second case of why there was a delay on a military mortgage is associated with the borrower’s early dismissal from service. As a result, the loan agreement is violated, and the former serviceman is obliged to return to Rosvoenipoteka what has already been paid (), continuing to pay the loan. However, here you need to take into account the total duration of service and other nuances. But if the mortgage is overdue, the consequences will be negative in both cases. In such a situation, it is important to understand what the borrower should do.
Termination of a mortgage agreement
The seriousness of the decision to take out a mortgage is difficult to overestimate. But often citizens are overly optimistic about their capabilities or do not fully understand how to properly invest money in real estate in 2021, which leads them to think about terminating the agreement. There are three options here:
- If the mortgage agreement has already been drawn up, but not yet signed, it is enough to visit the bank and write a statement of refusal. Often, lenders try not to lose a client and begin to offer him more favorable conditions;
- If the agreement is signed, but the money has not yet been credited to the borrower’s account, you will have to prove to the manager your right to refuse. The fact is that, according to the law, the agreement is considered to come into force only after the funds are transferred;
- If the agreement is concluded and the borrower receives the money, it is necessary to go to court and show that there are good reasons for the refusal. As a rule, in such a situation, the bank offers to sell the apartment and repay the loan from the proceeds.
If in the first two cases it is enough to know your legal rights, then in the third you need to try to prove to the court the validity of the demands for termination of the contract. To do this you will need the relevant documents:
- Certificate 2-NDFL about a decrease in the borrower’s income level;
- Extract from the work record book about dismissal from work;
- Certificate of divorce;
- Child's birth certificate;
- An extract from the medical record confirming the presence of a serious illness;
- An examination report identifying serious deficiencies in the mortgaged property.
What to do if the loan payment terms are missed
Non-payment and violation of the schedule can lead to serious troubles if left unchecked. When you have to fall behind on your mortgage payment, do not wait for a call from the bank, contact the lender yourself and explain the reason. What you shouldn't do is hide and turn off your phones. There are several possible solutions:
- credit holidays;
- restructuring;
- home sales;
- contacting the insurer.
Important to know: What to do if you don’t have money to pay your mortgage
You can only understand what to do if your mortgage is overdue based on the situation. If financial difficulties are caused by job loss or illness, take advantage of credit holidays (the right is specified in). You will be given several months to improve your financial situation by returning to the payment schedule. The overall term of the contract will extend for this period, but you will avoid litigation and seizure of the property.
If your mortgage is one day overdue, there is no need to worry. When it comes to 30 days or more, you should try restructuring:
- contact the bank with an application;
- discuss a new schedule;
- sign an additional agreement.
The loan term will increase, but the payment amount will decrease.
The sale of living space is permitted only with the consent of the mortgagee. It is necessary to resort to such a measure as a last resort, when the bank has already taken the apartment when the mortgage is overdue. It is better to use insurance if the situation that led to a violation of the schedule is covered by the policy. Otherwise, the creditor will definitely file a claim with the courts.
What to do?
What to do if you are in arrears on your mortgage with Sberbank? First of all, you need to contact the collection service or security service. In addition, it is important to explain in a timely manner the reasons for the lack of repayments. Of course, you won’t need to do this if you delayed payment by only 1 day or even a week. However, if the deadline is approaching a month, and you still have not solved your financial problems, this is a reason for active action.
Timely seeking legal assistance will allow you to:
- Find ways out of a difficult situation;
- Challenge illegally accrued fines and penalties;
- Agree with the bank faster;
- Reduce the debt if there are violations of the contract on behalf of the creditor;
- Restructure debt.
The specialist will communicate with the collection service and achieve the best solutions for the borrower. If your financial situation is completely hopeless, you are in arrears on your mortgage with Sberbank or another organization, and you don’t know what to do, your lawyer may recommend going through bankruptcy proceedings and writing off your debts.
What to do if the bank sues
This happens when pre-trial measures do not work. The debtor is first sent a request for early repayment of the debt. Then the mortgage delinquency trial begins. A claim is filed when the borrower does not pay the loan for a total of more than 180 days (). If during this time you do not respond to the bank’s requests, you may get the impression that the loan was taken out with the intention of non-repayment.
If the mortgage arrears are paid off before the trial, the lender will withdraw the demand for repayment. If you don't do this:
- The judicial authority will send a summons with the date and time of the hearing.
- It will take 2-3 months to consider the case, during which you will have to participate in meetings.
- During the process, you must provide evidence of valid reasons for missing a payment.
- If you have paid the debt and interest on the overdue mortgage by the time of the meeting, please provide the relevant receipts.
Based on the information received, a decision is made to sell the collateral property at auction. Then enforcement proceedings are opened, during which the housing will be sold. If the bank sued for arrears on the mortgage, and as a result of the proceedings the property was sold for an amount exceeding the amount of the debt, the excess will be transferred to the defendant (). But the consequences may be milder:
- debt collection by writing off part of the salary;
- changing the schedule and terms of the agreement with the bank;
- collection of only debt on payments, plus fines.
In these cases, the housing remains with the borrower. But more often it is taken away for subsequent sale at auction.
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Author:
Mortgage specialist Maria Yurievna Sokhan
Publication dateNovember 10, 2019May 13, 2020
What should you do first?
If the client does not transfer the mortgage payment on time, he will have to pay a penalty in the amount of 0.1% per day of delay. Citizens who do not repay the debt within 30 days will pay a fine at an increased interest rate (2-3% per day of the loan amount). Do not forget about timely payment of the insurance premium. If the borrower does not renew the insurance policy, the mortgage rate may increase significantly. A borrower who avoids communicating with a loan officer will have to talk to debt collectors. Collection department employees will call not only the debtor, but also co-borrowers. Some will have to communicate with debt collectors in person.
A prolonged absence of payments (90 days) will lead to the bank filing a claim in court. The collateral property will be seized. After this, the apartment will be transferred to the bank’s balance sheet and will be sold during special auctions. Some bank clients refuse to voluntarily leave the seized premises. In this case, they will be forcibly evicted from their housing. An attempt to counteract the bailiffs may result in the calling of a special forces unit that will use special equipment and weapons.
You should not avoid contact with bank employees. It is better to visit the bank office and honestly talk about your problems. Bankers are interested in a person repaying his debt in full. They will definitely accommodate the borrower and offer a debt restructuring program.
The credit committee may extend the loan term and temporarily reduce the monthly payment. The borrower can also become a participant in the “mortgage holiday” and receive a deferment to replenish the mortgage account. During this time, a person can find a new job and additional sources of income. Many banks have loan refinancing programs that reduce the cost of borrowing. A borrower wishing to use this service must provide the following documents to the bank:
- A completed application form;
- Original passport;
- Certificate of income in the form of a bank or 2-NDFL;
- Tax return in form 3-NDFL (for persons with additional sources of income);
- Extract from the Unified State Register;
- Certificate of unemployment benefit amount (issued by the employment service);
- Certificate of absence of debt to utility companies;
- Salary card account statement;
- A copy of the insurance contract and a receipt confirming payment of the insurance premium;
- Papers confirming disability or loss of ability to work.
Refinancing is carried out on the basis of an application in the established form. To re-register a mortgage, the consent of Sberbank is required. If the borrower is unable to repay the mortgage in the medium term, then he should sell the mortgaged apartment or house (with the consent of the bank).
Holidays are not for everyone
Now mortgage borrowers who are facing financial difficulties amid the pandemic can take advantage of special loan holidays. However, due to the limited limit, not everyone can receive them. The maximum mortgage loan size for obtaining a vacation is 1.5 million rubles. For comparison, the average size of a mortgage loan in the country is about 2 million rubles; in Moscow this figure is close to 5 million rubles.
“Credit holidays could be an effective tool to help mortgage borrowers in the current situation. However, the adopted limitation on the maximum mortgage loan amount significantly narrows the circle of potential recipients of support,” noted Ekaterina Shchurikhina.
According to NBKI estimates, a third of mortgage borrowers in Russia will be able to go on a credit holiday. Either residents of small towns with low housing costs, or those who have already repaid most of the loan can get into this program. “The most logical thing here would be a more differentiated regional approach to expand borrowers’ access to credit holidays, based on the average loan amount in each region,” says Alexey Volkov from NBKI.
It is also not entirely clear what documents banks will accept as proof of a decrease in income. In addition, for borrowers with a low standard of living, even a decrease in income of less than 30% can become a serious problem in repaying the loan.
In his last address on April 8, President Vladimir Putin ordered the expansion of mortgage holidays to more people. The government will look into this issue. The Ministry of Finance admitted that the conditions for providing credit holidays for mortgagees could be revised towards increasing the loan amount.
“Citizens will turn to the state for help and try to take advantage of support programs”
Olga Sokolova, head of research in the field of construction and real estate at the NAFI analytical center:
— Based on the experience of past years, we can say that in a situation where mortgage payments become impossible, citizens first of all try to find ways to continue mortgage payments. Depending on the complexity of the situation, they can turn to relatives or friends for help, or to creditor banks for loan restructuring.
The majority (70%) of mortgage borrowers are families with children, and they are often recipients of various government support measures. If income decreases and difficulties arise with loan repayment, citizens will most likely turn to the state for help and try to take advantage of support programs.
