Debt restructuring - creating conditions for a more comfortable mortgage loan repayment. It allows you to change the currency, reduce the interest rate, increase the duration of payments, and take advantage of the credit holidays. You can use it under certain circumstances.
Restructuring of a mortgage loan - revised by the bank of the main terms of the concluded agreement in favor of the client. As a result of such events, conditions become more comfortable. The procedure does not imply debt cancellation or partial cancellation. More favorable conditions are simply created. Further options for debt repayment are developed by the parties jointly; they may have different parameters.
Who is eligible to benefit from mortgage restructuring?
Application can be made by:
- combatants and veterans;
- families with a disabled child;
- family members with minor children.
The bank can also agree to an agreement with the borrower when the client's marital status changes. With a divorce, part of the budget is lost. Sometimes monthly income also decreases. These reasons are valid for the conclusion of a new contract.
Membership in a particular group is often insufficient. The bank agrees to the transaction if the borrower has no delinquencies, received a mortgage at least a year before applying to the bank. We'll have to prove that the income has decreased by more than 30% or the debt payment has increased. The latter usually concerns loans issued in foreign currency.
Types of restructuring
It can be obtained in a variety of ways. Credit holidays are popular. During this period, the client may not repay the loan body, depositing funds only for the accrued interest. The vacation period is determined individually.
You can use:
- Refinancing. Debt repayment is carried out by obtaining a mortgage loan from another bank on more suitable terms. There is an opportunity to reduce the amount of payments or extend the terms of making payments.
- Elimination of late fees and penalties. This type is possible if the client has contacted the bank in advance with comprehensive evidence of the objective reasons for delays in payment.
- Change of currency. Such an opportunity is provided by banks if there has been a jump in the exchange rate.
Among the popular types is the state restructuring of mortgages. The state provides assistance in paying off the debt. Depending on the remaining amount, the amount of assistance can range from 25 to 70%.
How is the restructuring going?
A package of documents should be brought to the bank, which includes an application form, a certificate of income from the place of work, a child's birth certificate or divorce certificate, financial statements (for individual entrepreneurs). If the cause of the situation is impaired health, then you need to provide a certificate from the hospital.
After considering the application, the bank will need several days to make a decision. The more convincing the argumentation, the more likely it is for a positive decision. Since there are several types of restructuring, the client's opinion on which option suits him best is taken into account.
In conclusion, we note that the consideration of the application takes no more than 10 days. The bank must notify its decision in writing. It is worth contacting the department where the home loan was issued.
