Implementation by the Bank of the Department of the Department of the debtor: How does this happen?

It’s no secret that the Bank has the right to realize the property of the debtor for non-payment on a mortgage loan. Credit with the provision, in our case, mortgage, always insures banks from the loss of profits.

But few understands that the mechanism of housing sales mechanism works, and with what the owner of the real estate remains. About this in our material today.

When the borrower is not able to continue to pay a loan for a purchased apartment, the bank does not remain anything other than to implement this property.

Of course, the sale is preceded by various proposals for changing the terms of the loan agreement, in order to, the borrower was able to continue to fulfill credit obligations. But constant violations of the terms of the mortgage loan lead to the loss of the profit of the lender, and then he turns to court.

Another important document playing a key role in the sale of property is

The mortgage gives the bank the right to resemble the mortgage to another lender or realize real estate at the auction. You can do this without mortgage, but it is much easier with this document.

Of course, the bank can not sell the debtor’s apartment simply because he does not pay a loan. The creditor needs to prove a violation of the loan agreement. This can be done only through legal proceedings.

If primary bidding did not bring results, and were recognized as invalid, then the next bidding the price for real estate decreases by 15-20%. The reasons for repeated trading can be situations where buyers were less than 2 people, the winner did not make the full amount for purchased real estate on time, as well as if buyers did not offer the price above the original. Interestingly, trading can be conducted repeatedly.