Mortgage restructuring with state help in 2020 program conditions

Just something complicated

There is no separate law on the restructuring of mortgage loans in Russia. The mechanism was formed under the influence of practice. By 2020, the volume of loans secured by housing collateral approached the mark of 350,000 million rubles.

The total debt under such transactions increased to 7,470,183 million in domestic currency.

Over the past 2 years, the country has seen a steady increase in non-performing loans. If in January 2020, unfulfilled obligations were estimated at 54,575 million rubles, now the figure is at around 63,849.

Litigation with debtors requires significant costs from banks. The effectiveness of the procedures leaves much to be desired. Prompt foreclosure of the collateral is excluded. The legislator has established a number of requirements, failure to comply with which threatens the bank with losses.

Thus, Article 349 of the Civil Code of the Russian Federation provides for a mandatory judicial procedure for the seizure of mortgaged apartments, rooms and houses. The norm applies if the property is the only dwelling. The duration of the sale of property is calculated in months. However, the purchase of the premises at the market price is not guaranteed. Real estate liquidity remains low even in large cities.

Restructuring mechanisms allow you to get out of the situation with the least losses. It is more profitable for the bank to soften lending conditions and maintain the solvency of the borrower.

Restructuring

To undergo a restructuring operation, the bank must provide evidence that the debtor is unable to pay the mortgage due to a difficult financial situation.

Let’s say that after making a monthly payment, the borrower has less than two subsistence minimums left to live on. In this case, the contract is revised with the appointment of a reduced payment or its temporary suspension.

The time period of the agreement is extended or the remaining amount is moved to the final stage of the payment schedule. At the same time, the state partially compensates the borrower’s mortgage costs.

It is worth noting that the credit institution does not lose anything from this, but on the contrary, has some benefit, since the guarantees for the return of funds in such a turn of affairs are one hundred percent.

However, this procedure is only available to borrowers with a single home purchased with a mortgage. The price of the property should not exceed 160% of the regional average, and also in the absence of loan arrears.

Main stages

The agreement is amended according to the rules of Chapter 29 of the Civil Code of the Russian Federation. The basis is the agreement of the parties. It is impossible to force a bank to restructure a mortgage. The decision is made by the creditor after assessing all the circumstances. The procedure includes the following steps:

1. Appeal . When faced with difficulties in repaying a loan, the borrower can notify the bank about the problem. This must be done in writing. It is recommended to submit the application before the first delay. Debt and outstanding fines may be grounds for refusal. Not all financial organizations are ready to make concessions to violators. The document must indicate the reasons for the decrease in solvency and the desired restructuring scheme.
2. Reviewing the question . The procedure for handling customer requests is determined by the internal regulations of the financial organization. In most cases, the bank takes 2 to 4 weeks to respond. The decision is influenced by the mortgage loan repayment history and the state of the credit history. Conscientious citizens have much higher chances. Obstacles to restructuring may be debt on utility bills, open enforcement proceedings in the Federal Bailiff Service of the Russian Federation, and legal proceedings, including those related to the bankruptcy of a citizen.
3. Conclusion of an additional agreement . If the bank makes a positive decision, the borrower is invited to the territorial unit. The new rules are stipulated in a special document. The agreement becomes an integral part of the main loan agreement.

You cannot appeal a bank’s refusal to restructure. The legislation does not impose an obligation on creditors to relax the rules. Submitting an application does not relieve the borrower from liability for delays. Fines and penalties will be accrued according to the scheme established by the mortgage agreement.

Mortgage restructuring with the help of a real estate agency

The massive deterioration in the solvency of borrowers has contributed to the emergence of various kinds of consulting firms that, for an additional fee, promise to provide assistance in debt restructuring. Real estate agencies also decided to increase their profits. After all, their activities are directly related to transactions in the real estate market. However, as practice has shown, it is better for borrowers to contact the lender directly, bypassing intermediaries - this will make it possible to save not only time, but also money.

List of documents

The attachments to the restructuring application are determined by the bank. Financial organizations publish lists on official websites. To implement the mechanism, URALSIB clients, for example, will need to fill out a special questionnaire. Borrowers of Sberbank of the Russian Federation are given the opportunity to submit an online application.

There are no strict requirements for the provision of additional documents. However, evidence of deteriorating financial condition must be attached to the application. The following may indicate a sharp decrease in income:

• death certificate of one of the family breadwinners;
• protocols on fire, flooding, and other natural disasters resulting in loss of property;
• copies of work records with a notice of dismissal;
• certificates of registration as unemployed;
• documents on the birth or adoption of children, etc.

The borrower has the right to refer to any circumstances that caused a decrease in solvency. In this case, the bank has the right to limit the list of grounds for restructuring.

The procedure for receiving financial assistance from the state

After this, you need to prove your solvency and wait for a decision. If the answer is yes, take the certificate.

Important!

The certificate for a subsidy under the Housing program is valid for two months. During this time, you must apply for a mortgage (in the absence of your own funds and maternal (family) capital).

The bank will need to provide:

• an identity document (passport of a citizen of the Russian Federation) of both spouses or one of them if the family is single-parent;
• a certificate of income in form 2-NDFL and a document confirming the availability of money for the down payment;
• certificate of housing condition;
• marriage certificate, if available.

And the administration will need a document confirming the need for improved housing conditions. It could be:

• act on the unsatisfactory condition of an apartment or residential building;
• a certificate stating that one person in a family has less than the legal norm for the area of ​​an apartment or residential building;
• an extract confirming the absence of ownership of an apartment or residential building (issued by Rosreestr).

Applying for a subsidy to pay for a mortgage loan under the “Young Family” subprogram begins with an application to the local Housing Committee.

If you are put on a waiting list, then, as in the case of the Housing program, you will need to apply for a mortgage. As for the documents, they are the same, only you still need a certificate of family composition.

In addition to obtaining a mortgage, financial assistance from the state under the “Young Family” subprogram can be directed to:

• for a down payment on a mortgage;
• for the last installment if housing is purchased under an equity participation agreement (DDU);
• to repay an already issued mortgage;
• to pay for the services of a construction company.

A special feature of this program is that the real estate property must be the property of all family members, including children under 18 years of age - it will not be possible to register an apartment or residential building in the name of just one person.

But that's not all. Also, close relatives cannot appear in the purchase and sale agreement.

Has the municipality approved the application for participation in the Housing for Russian Families program? Then you need to act according to the following algorithm.

1. Select a real estate property. It could be an apartment in an apartment building; part of a residential building for one family with access to a common area (the house must stand on its own plot of land and have no more than 3 floors); residential building up to 3 floors.
2. Sign a purchase and sale agreement or equity participation agreement (DDU) or take out a mortgage.

Terms of restructuring

Adjustments to the loan agreement are always made according to an individual scenario. The following schemes have become widespread in practice:

Information about the restructuring of a mortgage loan is reflected in the citizen’s credit history. Subsequently, such information influences the assessment of trustworthiness. The citizen's rating decreases. Often, the fact of applying for a service leads to blocking or limiting the credit card limit.

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Mortgage restructuring: under what conditions is it possible?

Novostroy.ru: In October, the Central Bank supported the proposal to secure the borrower’s ability to restructure the mortgage. What reasons, in your opinion, may be sufficient and not sufficient for the borrower to have the right to use such an opportunity?

Anton Detushev, General Director of IKON Development: The possibility of restructuring a mortgage is clearly a necessary measure. However, it is important to accurately determine the reasons why the lender is obliged to accommodate the client halfway. In my opinion, we are talking about temporary disability as a result of illness, as well as loss of work as a result of layoffs. At the same time, it is important that borrowers cannot abuse the opportunity of mandatory refinancing by deliberately skipping payments. I believe it is worth prohibiting debt restructuring for clients with a bad credit history, no insurance, illegal redevelopment of the apartment, and also if the date of the last loan payment after debt refinancing exceeds the borrower’s retirement age. It is necessary to protect the interests of not only buyers, but also banks. Otherwise, there is a risk that lenders will massively refuse underwriting (a way to reduce banking risks . Ed .), complicating the evaluation criteria for obtaining a mortgage. Clients of pre-retirement age, young professionals and simply buyers with below-average income are at risk.

Konstantin Bobrov, director of the federal legal service “Unified Center for Protection”: The need for legislative intervention is long overdue and dictated by the economic situation in the state. The mechanism will work only if clear criteria are established by law that actually provide an opportunity for mortgage borrowers to soften their monthly loan burden, but at the same time preserve their housing. Sufficient reasons for borrowers to take advantage of the opportunity to restructure a mortgage should be job loss, a significant decrease in official income, a change in marital status (for example, the loss of a breadwinner)

N.RU: Have you ever encountered such borrowers in your practice?

A.D.: After the conclusion of the agreement, the further “fate” of the apartment purchased on credit is not known to the developer. After the bank transfers the cost of housing, all credit relationships take place exclusively on the investor-bank plane without any participation from the developer. However, our company, for the first time in the Moscow region market, has launched a refinancing program for buyers, where in the “one window” mode it is possible to reduce the mortgage rate directly through the project developer. The main thing is that at least six months have passed since the first loan payment, and there are no delays of more than 30 days. We have this opportunity because we cooperate with several banks, as well as leading appraisal and insurance companies.

Antonina Shornikova, sales department manager at EUROINVEST DEVELOPMENT: In my practice, there were no such borrowers. However, there was a case of switching from an installment plan to a mortgage because the borrower was unable to pay the remaining amount on the installment plan.

N.RU: What methods of protection can mortgage borrowers now use in a difficult financial situation?

A.D.: One of the most common ways to reduce mortgage payments without changing mortgage holders is through “credit holidays.” This program is available in many banks. The essence of the “vacation” is to defer the fulfillment of mortgage repayment obligations for a period of 1 to 12 months. Typically, banks allow only interest payments, while the principal amount will be paid only after a few months. Just by that time the borrower, for example, must find a new job. In addition, your bank has the right to reduce the payment by increasing the payment period. If you have other real estate, then by pledging it, you can get a loan and use it to pay off the mortgage. Finally, if you do not yet have a late payment, then it is worth refinancing the loan at a lower interest rate with another bank. The main thing is to act in advance, and not after the overdue debt has arisen.

K.B.: Today, you can restructure a mortgage through a bank by submitting an application to the credit institution that issued the loan. When you contact the bank, you will be offered a list of documents requested when processing a mortgage loan restructuring. I would like to note that so far the chances are small and a small number of borrowers have been able to achieve the result. At the moment, the Russian credit market is so poorly developed that banks do not have uniform standards and requirements for providing restructuring to clients in need. Restructuring methods today are aimed mainly at revising (or softening) the terms of loan repayment, reducing/postponing monthly payments, reducing penalties and other types of debt.

Suren Hayrapetyan, managing partner of Rebridge Capital: You can avoid losing your apartment now by taking advantage of mortgage restructuring only if you are confident that the financial situation will improve. Otherwise, if financial problems cannot be solved, it makes sense to solve the problem radically and, perhaps, sell the apartment yourself. In this case, the loan will be repaid and some amount of money will remain on hand.

N.RU: How many borrowers are there now who use these methods?

A.D.: The volume of refinanced loans in Russia as a whole in 2020 could reach 400 billion rubles, which will be from 10% to 20% of issued mortgages. In my opinion, this year may become the most active in terms of refinancing. Borrowers who took out a mortgage in 2015-2016 will be able to take advantage of this opportunity. at higher rates. At the same time, the bulk of such applications will not be related to problem loans. According to the Central Bank of the Russian Federation, the share of overdue debt from 91 to 180 days is 0.22% (total debt), over 180 days - 1.72%. That is, the potential number of clients who would take advantage of the mandatory restructuring is small. The vast majority of clients refinance non-problem loans.

K.B.: There are many people who want to take advantage, but those who actually took advantage are a small number.

S.A.: It’s quite difficult to give some statistics; each bank has its own. But the restructuring is definitely not widespread. The problem is exaggerated by the media. Today, according to the Central Bank, the amount of arrears on mortgages is several times lower than on consumer loans, and is unlikely to increase significantly.

N.RU: Will the number of problem borrowers increase in the near future?

A.D.: In absolute numbers, the share of problem borrowers will indeed increase, if only for the reason that banks are issuing more loans. Official statistics also speak about this. For example, as of September 1, 2020, the amount of overdue debt over 180 days in Russia as a whole amounted to 88,106 million rubles. As of September 1, 2020 – 103,084 million rubles. At the same time, the share of debt over 180 days in relative terms over the same period decreased from 2.38% to 1.72%. I believe the values ​​will remain within 2%. That is, the problem of overdue debt has not acquired serious proportions and is at a relatively low level. For comparison, as of September 1, 2010, the amount and share of overdue debt over 180 days was 61,147 million rubles and 5.5%. The quality of loans has improved, despite the greater availability of mortgages. This was largely due to the underwriting of banks, which today is stricter than 3-4 years ago. This is especially true for mortgages without a down payment, for which many applications are rejected.

K.B.: In my opinion, there will not be a sharp increase in the number of problem borrowers. However, our company has already developed and is developing several products aimed at solving the problems of such mortgage borrowers, including those who wish to restructure their mortgage during bankruptcy proceedings.

S.A.: In our opinion, there are currently no serious reasons for a significant increase in the number of problem mortgage loans. Most banks are now issuing such loans very carefully, and borrowers may experience personal expenses, but they will definitely pay off the mortgage.

Comparative analysis of programs

All banks will have to document the existence of grounds for restructuring.

Basic moments

The restructuring procedure has many features that you need to know about in advance in order to eliminate the possibility of receiving a refusal from financial institutions.

In addition, it is recommended that you initially familiarize yourself with general theoretical information and legislative regulation of this issue in order to protect personal rights and interests.

What you need to know

The restructuring procedure involves a review by a financial institution of the conditions for providing a mortgage loan upon the preliminary application of the direct borrower.

At the same time, the following are subject to revision:

• debt repayment terms;
• previously established interest rate;
• currency of the mortgage loan.

Review of a housing loan is possible only if the applicant’s living conditions deteriorate and at the same time it is impossible to repay the debt in the previous amount.

In particular, this applies to cases in which the borrower’s wages are no longer paid or he or she is fired altogether.

In order to be able to revise a mortgage loan agreement, it is extremely important for citizens to provide documentary evidence of living conditions.

For example, by providing a work book with a corresponding entry regarding dismissal.

At the same time, there is no need to try to mislead the direct creditor, since if no grounds for amending the current agreement are identified, an immediate refusal will follow.

In addition, the financial institution will refuse if the borrower has a negative credit rating.

For your information, the restructuring procedure is possible only at the request of the borrower and cannot in any way affect the existing image.

Taking into account the fact that the financial obligations formed after receiving a mortgage loan are reduced, and thereby the interest rates are reduced to 12% per annum.

In addition, the creditor reserves the right to defer the debt repayment procedure for 1.5 years.

The borrower pays the established portion of the interest within the specified period, and the remaining half of the debt is paid by AHML.

Thanks to this, we can talk about the opportunity to improve one’s financial well-being through government support.

In turn, the lender does not lose anything, and therefore all banks, without exception, are willing to take this step.

Prerequisites

The Russian Government Decree of April 2020 established the key rules for providing state support.

These include:

• persons applying for state support are included in the established category of applicants;
• reduction in actual wages of the credited person;
• over the past 3 months, the amount of average earnings has been reduced in relation to previous periods by more than 30%;
• the amount of the mandatory monthly payment has increased by more than a third;
• the total average income of the spouses for the last quarter is less than twice the minimum subsistence level;
• housing is located in Russia;
• the occupied area of ​​the property is no more than the established norm;

In accordance with the rules, the norm is:

• the cost of the premises cannot exceed the established market price;
• the purchased residential assistance is considered the only one;
• The loan was due to be issued more than a year ago.

The Government of Russia, represented by AHML, is providing support to borrowers who find themselves in an unforeseen situation.

How to find out whether an apartment is privatized or not via the Internet, see the article: how to find out whether an apartment is privatized or not via the Internet. Read an example of how to write a statement to a local police officer about noisy neighbors here.

Anyone can apply for it, but first of all, this directly applies to preferential categories of citizens.

These include:

• persons who are involved in raising minor children. In particular, this applies not only to relatives, but also to adopted children and those under guardianship;
• pensioners, as well as military veterans;
• citizens who have documentary evidence of disability;
• parents who are raising disabled children;
• large families.

It is these categories of citizens who can claim the right to restructuring.

Legal basis

Back in April 2020, Resolution No. 373 “On the basic conditions of the state assistance program for certain categories of borrowers under a mortgage loan agreement” acquired legal significance.

On the basis of the established Regulations, groups of persons who have the right to count on financial assistance from the state treasury were approved.

Despite the possibility of receiving only certain categories of citizens, the program provides a chance to significantly improve their financial situation. This Resolution has been amended several times.

In particular, in 2020, for the main category of borrowers, mortgage restructuring using government assistance is possible at the level of 20% of the remaining amount, but not more than 600 thousand rubles.

It follows that the maximum permissible amount of on-lending has not been established. But this applies exclusively to citizens included in specific social groups.

How to arrange a mortgage restructuring in AHML

If you are in a difficult financial situation and are interested in the federal loan restructuring program, contact your lender with an application and a package of documents. Many Russian citizens were able to achieve a relaxation program and be able to make monthly payments without damaging the family budget.

Combine all loans into one! Reduce your overpayment and monthly payment!

Refinance

The restructuring program is implemented according to the following rules:

• If the client of the creditor bank issued a loan in foreign currency, it is converted into Russian rubles at a rate that cannot exceed the rate established by the Bank of Russia.
• The interest rate should not be higher than that established at the time of signing the restructuring agreement (for ruble loans).
• For loans issued in foreign currency, this rate should not be higher than 11.5%, which applies to the entire loan period.
• If the mortgage is with state support, the loan balance is reduced by 30%, but the amount of the reduction should not exceed 1.5 million rubles.
• The penalty that has not yet been paid is subject to write-off. The exception is those unpaid penalties, the decision on which was made in court proceedings.

When restructuring under a state program, the lender cannot charge the borrower a fee for processing this assistance. He does not have the right to shorten the term of the loan.

What to do if your restructuring request is denied

Agency employees do not always approve of government assistance to citizens in mortgage restructuring, and often refuse. There may be several reasons for this.

A refusal to restructure an AHML mortgage can be initiated by the bank, because its relationship with the borrower is considered a priority, which is confirmed by the loan agreement. In his contract, the borrower will definitely find a clause that states that restructuring is possible only with the consent of both parties. Neither the borrower nor the lender can participate in the AHML program under compulsion.

Another reason for the refusal is the unwillingness of AHML to allocate money for restructuring under a specific agreement. Perhaps the applicant or his financial conditions do not meet the criteria established by the program, and the commission made a decision not in favor of the borrower.

What to do if they refuse, maybe go to court? Under no circumstances should you do this! The actions of the bank and agency will be recognized as lawful, and you will only waste your time on legal costs. Try to find another way to resolve the issue.