Termination of a mortgage is an increasingly common problem in modern times. Whatever the reason for the termination of the contract, its competent implementation will help the borrower to avoid unnecessary financial losses.
It is necessary
- - mortgage agreement;
- - a letter of request to the bank to terminate the contract;
- - application to the court.
Instructions
Step 1
A mortgage is a type of collateral. It is a pledge not only of housing, but also of any type of real estate, which, according to the Civil Code, includes land plots, buildings, and construction in progress.
Step 2
When concluding a mortgage agreement with a bank, carefully read not only the payment procedure, but also the possibility of terminating the mortgage agreement prescribed in it, since this process can lead to large financial losses for the borrower.
Step 3
The reason for the termination of the agreement may be the inability to pay the funds on the loan, as well as the sale or exchange of a borrowed apartment. In these cases, try to come to an agreement with the bank on the most optimal form of repayment of the mortgage loan or purchase of real estate by its future owner. According to the law, the unsatisfactory financial condition of the bank (up to bankruptcy) is not a reason for terminating the mortgage agreement.
Step 4
If you need to terminate the mortgage agreement, contact the creditor bank with a request to terminate the agreement by mutual agreement. If a mechanism for terminating this agreement is spelled out in the agreement concluded when issuing a mortgage, count on the implementation of these procedures. Be prepared for the fact that it will be necessary to repay to the bank the full amount of money received from the bank on credit, as well as the amount of payment of a mandatory payment in the event of a loan cancellation (previously called the bank's commission upon termination of a mortgage).
Step 5
If the bank refused to terminate the agreement (in writing) or the expectation of its response has exceeded 30 days, go to court to resolve the dispute. Judicial termination of the contract should be made from the point of view of causing the least damage to both parties, since there are no clear legislative acts on this issue. With the termination of the contract, the obligations of the parties under it cease.
