Defaulted borrower. What should I do?

Mortgage loan - it's kind of long-term bank lending. On average, it is designed for 10-20 years, and for a time a lot can happen. According to experts, the peak of bad loans after some 3-4 years from the date of issuance. While many banks are working with mortgage programs, in practice, this situation has not faced since the length of their activities in this area have not yet reached a critical period. What do I do if life's circumstances have changed suddenly and pay on a mortgage has become impossible? Compromise is possible here is as a general rule. If the borrower has the guarantors of the loan (which, for example, necessarily requires the Savings Bank), the claim is presented to them. If there is no bail or they also can not pay, you should claim the creditor bank to court over the recognition of the so-called borrower defaults and the sale of mortgaged apartments at auction. Proceeds from the auction amount the bank collects its (the remainder of the loan, interest, penalties, costs of the auction), the rest is returned to the borrower. Of course, this is an extreme measure, and report to it should not. What can we do to not bring to the extreme measures related to the eviction from the apartment? First of all, the borrower must contact the creditor bank and tell them about their problems. After explaining the situation, you need to apply for a deferment of payment of loan payments. If difficulties are clearly temporary in nature, the bank offers a reprieve. Temporary difficulties can be recognized even loss of employment, unless the borrower's demand on the market. So do not hide from the bank, he might go to the borrower to meet, and will pay a penalty for delay, give him time to work. After consideration of the application, many banks are taking the decision to suspend payments for a specified period. Thus, the borrower has the opportunity to find a new job and resume regular payments on the loan. By the way, how to behave in a particular bank, it is best to inquire before signing the loan agreement. Especially if the borrower is not very confident in their own future. In practice, banks rarely go on the principle that it is easier for a while suspend payments rather than to start trouble and costly procedure of foreclosure and sale of the object of pledge. Moreover, we can say that the banks are forced to go into an agreement with the debtors, while there is hope that the payments would resume. If the delay was not available or it was not enough time to solve financial problems, the borrower with the creditor bank embarking on an apartment. It is absolutely not necessary to think that the bank will take away everything: they need only recover the loan amount plus interest on the loan. It should be borne by the market value of mortgaged apartment. But since she can buy a flat increase, so the borrower can return the difference between the purchase and sale value of his home. Repayment options are as follows. First, at the time of the sale of mortgaged apartment buyer's money can be decomposed into two cells. After registration of the transaction money from one cell (the loan and interest thereon) grabs a bank clerk, and from the other (the difference between the original and the cost of hospital bed apartment) - the seller, the now former borrower. There is a second option - to find a new candidate for the house and a mortgage loan, which will need to make the necessary money to the cashier of the bank, and the difference of the agreed purchase price of the apartment lay a depository under the usual conditions of purchase and sale of the apartment. After that, the bank must write an official letter of notification to the General Directorate of Federal Registration Service in Moscow that the loan repaid, the bank has no claim and no objection to the removal of mortgage and sale of the apartment. The contract of purchase and sale of apartments will be designated, at the time the transaction was flat on bail in a particular bank, but on the basis of the above notice of the bank guarantee was withdrawn, and title passes to the buyer as unencumbered. In this case, only a change of the mortgagor. This is a very simple version, which, however, in practice, is extremely rare. Themselves to blame for all this was, as they say, sweetheart scenarios. But there may be situations where the borrower does not pay on the loan and does not go to the bank with any statements. In this case, the bank sends legal notice to the borrower for mandatory early redemption of the loan upon default by the mortgagee will be forced to implement a flat in the court in accordance with applicable law. After the court's decision on the implementation of the mortgaged property at auction in the case include bailiffs, which describe the property in the apartment, evicted the careless borrower, and the apartment comes with the realization of trading. In practice, everything is pretty easy: write registered in the apartment people, especially if the apartment is the only place where they live. This raises several questions and more. And if the bank will not sell an apartment on the cheap? What is this auction? Who determines the sale price? First of all, foreclose on the mortgaged housing imposes only a court. When considering the case of foreclosure of the mortgaged house is the court decides on determining the borrower's debt to the bank, how to implement the mortgaged housing as well as the initial sale price of homes and their implementation (in the absence of an agreement between the borrower and the bank). Housing, pledged under the mortgage, on which the court levied, is realized through the sale to the public (open) of trading in accordance with applicable law. The final results of these trades are not known beforehand, it all depends on supply and demand, but the price here may well be "not quite a market." In any case, the consequences of judicial decisions may be subject to the borrower very sad. He may lose not only the housing (now law allowed deportation even of a single apartment, where she pledged to the bank), but a considerable portion of its own funds, which will be used to compensate for costly court proceedings. Of course, the debtor shall not be thrown into the street. Legislators should consider the eviction of defaulters in the house of so-called resettlement housing. What is this fund is not yet very clear. It seems that in Moscow he was there, but there is no guarantee that they will be able to take advantage of all the banks, not just working on the mortgage program of the Moscow government. Precedents have not yet been, and it is impossible to predict how the eviction process will be implemented in practice. Borrower defaults - is still fairly rare phenomenon, especially since the loan before all borrowers pass a rigorous underwriting process, and who got it do not give. But no matter how a situation should not be forgotten more about this factor, as created by the credit bureaus, which can now be informed of any delays and problems with the payments. Negligent payer may get blacklisted and then really anywhere and never get credit.