Assignment mortgage involves the transfer of rights and obligations under the contract to a third party. It can be a legal entity or an individual. Not all banks offer this service.
When drawing up a mortgage agreement, the rights and obligations of the borrower and the lender are indicated. Each of the parties can transfer its obligations to a third party. This procedure is called assignment.
When is the procedure relevant?
A person can transfer ownership of an object along with the rights and obligations to the bank, which is engaged in servicing the mortgage loan. Often this situation occurs if:
- the couple divorced, one of them refuses his share;
- there was a need for an urgent sale of real estate;
- issues of inheritance are being resolved.
The lender can assign a home loan to another legal entity. This practice is used if the entity is in arrears. In this case, the collection company acts as a third party.
A mortgage on the assignment of rights allows the debtor to be released from obligations, the new borrower to become the owner of housing at a similar cost, to return the debt to the bank along with interest. Since such deals are beneficial to all parties, they have recently become popular.
Features of the assignment of mortgage rights
The bank will not enter into an agreement that refers to the assignment. An additional document is concluded. The tactics are offered by Sberbank, VTB and some other large financial institutions. Sometimes, when dealing with a new borrower, changed data is displayed. They may relate to an increase in the interest rate upward.
The peculiarity lies in the fact that housing under the new contract can be sold. But such an operation is possible only after the financial institution has assessed all the risks and issued special documents. The bank itself can resell the apartment to a more adequate payer if the previous client has accumulated large debts.
The advantages of such transactions include:
- no need to assess the property;
- no need to pay the first installment;
- the contract is drawn up without a commission;
- documents for the object have already been collected, attached to the case.
Assignment of rights at the initiative of an individual and a creditor
When interacting with an individual, the mortgage is issued only after the permission of the credit institution. This type includes not only transactions involving divorce and division of property. The subject can exercise this right when moving to another country for permanent residence. This may be the reason that the bank begins to demand early payment of debt, removal of housing from the encumbrance.
There is only one possibility when the borrower can dispose of the pledged property without the approval of the bank - a will. All other operations are performed only after obtaining permits.
Assignments initiated by a bank often occur in the event of bankruptcy. Then all rights and obligations are transferred to the new owner. He must notify the payers in writing of the new details without specifying the reason for the bankruptcy. During the period of the transfer of rights, the new owner cannot issue fines and impose penalties for violating the debt repayment period until the end of the liquidation procedure. The bank may insist on a new deal in some other situations:
- the transaction was recognized as illiquid;
- urgent debt repayment is required;
- the collateral is collected in case of violations of the payment schedule.
How does the procedure take place?
The following scheme is most often used: physical. the person finds the seller who owns the mortgage apartment. Both citizens apply to the bank with a written statement of their desire to use the assignment right. Employees of the credit institution are checking the new participant, resolving issues regarding the renewal of the transaction.
If the third party meets the requirements of the bank, then a separate mortgage document is signed. Registration of new documents and settlement between the buyer and the sellers takes place.
Please note: the first owner of the property can go to court to challenge the transaction. A sufficient argument is a statement that the conditions were deliberately disadvantageous. This is one of the reasons why some banks do not agree to the assignment.
Transactions carried out under an equity participation agreement are subject to lower risks. But the buyer can lose significant amounts if, for any reason, the DDU is terminated.
In conclusion, we note that some citizens are asking to take out a loan for the further assignment of mortgages. You should not agree to such a deal, since the borrower's consent to transfer the debt to another citizen is not enough. The final decision rests with the bank. If he initially decided not to lend to a citizen, then it is unlikely that there will be a positive response to the conclusion of a new agreement.
