Buying an apartment secured by Sberbank with a Sberbank mortgage

Procedure

Step 1. Contact the bank

It doesn’t matter at all how the mortgage loan was repaid - on schedule or ahead of schedule; after paying the last ruble under the contract, the apartment still remains pledged to the bank. In order to prove to the state the full payment of the principal and interest on it, you need to contact the bank that provided you with a loan to purchase a home to formalize the “repayment” of the mortgage on the apartment.

On the back of this document, an authorized employee of the bank branch must state that all obligations under the mortgage agreement have been fulfilled in full, and the borrower and mortgagee have no claims against each other. The date you made your last loan payment should also be indicated here. The document is signed by the lender's representative.

Be careful: the same branch employee must be indicated on the front and back sides of the mortgage.

In addition to the mortgage note, you must require a notarized copy of the power of attorney for the bank specialist signing the document.

You also need to fill out a joint application with the bank to remove restrictions from the property. A sample of such an application will be provided by bank employees or Rosreestr specialists.

Step 2. We collect a package of documents

To remove encumbrances from residential real estate you will need:

a mortgage for an apartment taken from a bank (make a duplicate for yourself - you never know where else it will be needed) and a power of attorney for the person who signed the above-mentioned document,
application for lifting restrictions on the apartment, signed by employees of your bank,
passports of all home owners who are indicated in the certificate of ownership, plus the certificate itself.

Step 3. Go to Rosreestr

When all the papers have been collected, it’s time to contact Rosreestr. Please note: when confirming the repayment of the debt, all homeowners indicated in the relevant certificate must be present at Companies House.

Removing the collateral from an apartment after paying off the mortgage takes no more than two to five working days. After this period, Rosreestr employees provide you with documents on the removal of the encumbrance from the apartment.

Why is it necessary to remove the encumbrance from the apartment?

Having dealt with the question of how to rent an apartment as collateral after paying off the mortgage, it’s time to understand: what is this for? It would seem that the debt has been paid, there are no more obligations to the bank. So what are all these manipulations for?

The fact is that until the restrictions are lifted, the apartment remains secured by the lender. Those. It doesn’t matter at all that you have fulfilled your part of the contract, you still have no right to dispose of the property. Only after contacting Rosreestr with all the necessary documents and receiving confirmation of the removal of the encumbrance, you become the full owner of the property. Only after this can you sell or exchange housing, as well as rent it out. This is why it is necessary to immediately confirm the fact of full repayment of the mortgage to the state.

Sample form of a pledge agreement

Pledge agreement

_______________________ "__" _________ 20__

__________________________________________, hereinafter referred to as

(name of creditor)

“Pledgee”, represented by ________________________________________________,

(position, full name)

acting on the basis of _____________________________________________________, with

(charter, regulations, power of attorney)

one side and __________________________________________________________,

(full name of debtor)

hereinafter referred to as the “Pledger”, on the other hand, and together

referred to as the “Parties”, have entered into this agreement as follows:

1. The Subject of the Agreement

1.1. To ensure the fulfillment of the Pledgor's obligations to

Pledgee under the loan agreement dated “___” _______ 20__ N ____,

(hereinafter referred to as the “Loan Agreement”), according to which the Pledgor

A loan was provided for the purchase of ____________________ (hereinafter referred to as the Property),

The Pledgor pledges to the Pledgee the Property that he

acquires at the expense of funds received under the Loan Agreement.

1.2. By virtue of the pledge under this agreement, the Pledgee has

right in case of non-fulfillment or improper fulfillment by the Pledgor

of their obligations under the Loan Agreement to receive satisfaction from

the value of the pledged Property in preference to other creditors

Pledgor.

2. Subject of collateral

2.1. The subject of the pledge under this agreement is ____________.

________________________________________________________________________.

(characteristics, individual characteristics of property)

2.2. The property is not property withdrawn from circulation or

limited turnover.

2.3. The transfer of the Property as collateral under this agreement is not

contradicts the law and other legal acts and does not violate the rights and

interests of other persons protected by law.

2.4. The property is not encumbered with any obligations

Pledgor before third parties and free from their claims, under

does not constitute arrest or prohibition.

2.5. The property does not have any properties, as a result of the manifestation

which loss or damage to the Property may occur, and is suitable for

operation.

2.6. Replacement of the Property is permitted with the consent of the Pledgee.

2.7. If the Property is lost or damaged or the right

ownership of it will be terminated on the grounds established

by law, the Pledgor is obliged to restore the Property within a reasonable time or

replace it with other equivalent property in agreement with

Mortgagee.

2.8. Subsequent pledge of the Property is not permitted.

2.9. The pledged property remains in use by the Pledgor.

3. Property Valuation

3.1. Property valuation is carried out by mutual agreement

Pledgor and Mortgagee. By agreement of the Parties, the estimated value

As of the date of conclusion of this agreement, the property amounts to

_______ (____________________________) _________.

(amount in figures and words) (currency)

3.2. If during the period of validity of this agreement the cost of the Property

its value will decrease or there will be a threat of decrease due to

circumstances for which the Pledgee is not responsible, the Pledgee

has the right to demand from the Pledgor, and the latter is obliged to

The deadline for the pledgee to transfer the pledge to the pledgee on the terms

of this agreement additional property at the choice of the Pledgee and

by mutual agreement of the Parties or provide other additional

ensuring the fulfillment of obligations under the Loan Agreement.

4.The essence, size and period of fulfillment of the obligation secured

collateral

4.1. The Pledge of Property ensures the performance by the Pledger

the following obligations under the Loan Agreement:

4.1.1. Loan repayment in the amount of: ____ (_________________) ______.

(amount in numbers and words)(currency)

4.1.2. Payment of interest on the loan amount in the amount of:____ (_________)

percent per annum;

4.1.3. Payment of a penalty in the form of a fine in the amount and in the manner

established by the Loan Agreement.

4.1.4. Compensation for losses caused by failure to perform or

improper fulfillment of obligations under the Loan Agreement;

4.1.5. Reimbursement of the Pledgee's necessary expenses for

maintenance of the Property and costs of foreclosure on the Property and its

implementation.

4.2. Deadlines for fulfilling the obligations of the Pledgor under the Loan

agreement are established in the Loan Agreement.

5. Maintenance and safety of the pledged property

5.1. The burden of maintaining the Property and the risk of its accidental destruction or

accidental damage is borne by the Pledgor.

5.2. The mortgagor is obliged:

5.2.1. Insure at your own expense the pledged Property in its entirety

value from the risks of loss and damage, and if the full cost

The property exceeds the amount of the claim secured by the pledge - by the amount

not less than the size of the requirement.

5.2.2. Take measures necessary to ensure safety

pledged Property, including to protect it from attacks and

claims from third parties.

5.2.3. Immediately notify the Pledgee of the threat

loss or damage to the pledged Property.

5.3. The pledgee has the right to check the documents and actually

availability, condition and storage conditions of the Property, for which the Pledgor

is obliged to present the Property upon request of the Mortgagee and

relevant documents. Rights of the representative demanding action

necessary to carry out the inspection must be certified

power of attorney.

6. Grounds and procedure for foreclosure on mortgaged property

6.1. Seizure of Property to Satisfy Claims

The mortgagee may be called upon in case of default or

improper fulfillment by the Pledger of obligations under the Loan

agreement.

6.2. Foreclosure of the Property transferred to the Mortgagee in

bail, carried out in court or without going to court in

the procedure established by agreement of the Parties on the procedure for foreclosure

for the pledged Property and its sale, concluded after the occurrence

grounds for foreclosure on the collateral.

6.3. If the proceeds from the sale of the Property amount will be

not enough to fully repay the Pledgor's debt under

obligation secured by the pledge, the Pledgee has the right to reverse

foreclosure on other Property of the Pledgor, to which, in accordance with

Forfeiture may be imposed by law.

6.4. The pledgor has the right to terminate the appeal at any time.

recovery of the Property and its sale, having fulfilled its obligations under

Loan agreement.

7. Early fulfillment of an obligation secured by a pledge

7.1. The pledgee has the right to demand early execution

obligation secured by a pledge in the following cases:

7.1.1. If the subject of the pledge has left the possession of the Pledgor, the

which it was abandoned, not in accordance with the terms of this

agreement.

7.1.2. Violations by the Pledgor of the rules on replacing the subject of pledge.

7.1.3. Loss of the collateral due to circumstances for which

The Pledgee is not liable if the Pledgor does not exercise the right to

a reasonable period of time to restore the collateral or replace it with another

equal property.

7.2. The pledgee has the right to demand early execution

obligation secured by a pledge, and if his demand is not

satisfied, foreclose on the collateral in the following cases:

7.2.1. Violation by the Pledgor of the prohibition on subsequent pledge.

7.2.2. Failure of the Pledgor to fulfill the obligations provided for

clauses 5.2.1. and 5.2.2. actual agreement.

7.2.3. Disposal of pledged property without consent

Pledgor.

8. Termination of pledge

8.1. The pledge of Property under this agreement is terminated:

8.1.1 with the termination of the Pledgor’s obligations under the Loan

agreement;

8.1.2 in case of destruction of the Property, if the Pledgor has not replaced it

according to clause 2.7. actual agreement;

8.1.3 in case of sale of the Property when applying for it

collection, as well as in the case when the sale of the Property turned out to be

impossible.

8.2. Ownership of the Property addressed to

collection in accordance with this agreement terminates at

of the Pledgor from the moment the ownership of the Property arises

the person to whom it passed.

9. Final provisions

9.1. This agreement comes into force from the moment of its conclusion and

is valid until the Pledgor fully fulfills his obligations under

Loan agreement.

9.2. The right of pledge arises from the moment of conclusion of this

agreement.

9.3. This agreement has been drawn up in two copies, each

equal legal force, one for each of the Parties.

9.4. In all cases not provided for in this agreement,

The parties are guided by the current legislation of the Russian Federation.

10. Details and signatures of the Parties

Pledgee Pledgor

__________________________________ ___________________________________

Pledgee Pledgor

Be careful when choosing your future property

When buying an apartment on the secondary market, there is a risk of purchasing housing with restrictions. In this case, the certificate of ownership may not have a mark on the existing encumbrance. Accordingly, there will be no mention of this in the purchase and sale agreement. Therefore, before registering a property, check its condition on the official website of Rosreestr or with its local representatives.

In cases where several restrictions are imposed on housing (this can happen if the borrower refuses to pay), getting rid of them will be quite problematic. Therefore, if the property you have chosen has encumbrances, it is better to refrain from purchasing it.

Let's get acquainted with the terms

Before we get into the meat of the matter, there are a few basic legal terms that we'll use next:

The mortgagor is the person who provides the property as collateral. In the case of a mortgage, this is the main borrower,

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The pledgee is the person who accepts the property as collateral. In our situation, this is a banking or other organization that lends money to the borrower for the purpose of purchasing real estate. And he receives this very real estate as collateral for the loan.

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All relations between the mortgagee and the mortgagor are specified in detail in Federal Law No. 102 “On Mortgage (Pledge of Real Estate)”. In order to learn about the assignment of rights under a mortgage agreement, you need to read article number 47 of the same name.

Important: assignment of rights under a mortgage agreement, the rights under which are certified by a mortgage, is not permitted. When such a transaction is completed, it is considered void.

Later in this article:

What to do after paying off your mortgage step by step

As an alternative, to involve another person in mortgage lending, you can take on a co-borrower, for whom the real estate will be registered. The mortgage will be calculated based on your total income, and will be paid by one person, i.e. actual owner. In order to implement the plan, it is necessary that the second owner has a confirmed official income according to the 2NDFL amendment and the appropriate age - up to 55-60 years. Such conditions vary in banks, so it is worth checking them at the place of application and registration. When attracting co-borrowers, you should keep in mind that several people can take out a mortgage, but they will be co-owners of the property. This is the most realistic and legal way of replacing the lender that banks can agree to. Financial institutions are extremely undesirable and reluctant to engage in various frauds and deviations from established rules.

How to reduce the mortgage interest rate at Sberbank

This saving option is best suited for the initial stage of using a mortgage loan using the annuity method of making payments, when they are made monthly and the payment amount does not change throughout the entire loan term. Given the differentiated nature of mortgage payments, the interest rate reduction is relevant throughout the entire loan period. A win for the borrower is possible here if there is a significant difference in the rates.

Also read: Will the Bailiff Find an Account in a Bank If I am Registered in 1 Region and Opened an Account in Another

Other factors influencing the advisability of refinancing are the absence of restrictions in the Sberbank loan agreement with the client in the form of a temporary moratorium on early repayment of an existing loan and the moment when the difference between the rate of the existing and newly concluded loan agreement is no more than one or two percentage points. The overpayment must be reduced by an amount greater than the amount of additional costs for changing the current agreement with Sberbank.

Exchange of mortgage apartment

Repay the loan in full. This solution is not suitable for everyone, since the amount of the one-time payment is quite large.
Transfer the debt to a third party. Banks are reluctant to undertake such a procedure, as this significantly worsens the quality of the loan to the Central Bank of the Russian Federation.
Replacement of collateral. That is, an exchange of a mortgage apartment.

Part of the mortgage loan should already be repaid without delays. As a rule, banks allow exchange after 4–5 years of regular payments.
The new apartment should be 20–30% cheaper than the first collateral. That is, the cost of the new collateral, taking into account interest on the loan, should be lower.
New housing should not be located “in a bad corner.” The bank will never allow you to buy an apartment in a region that is not serviced by this bank.

How to reduce your mortgage rate at Sberbank

Reducing the interest rate is not the responsibility of the bank. He can do this not only in the name of the client, but also so that he is not lured to another bank.
It takes at least 7-10 days to process the application. In practice, this period can reach 120 days. You need to find out about the status of your application yourself. The most convenient way to do this is through your Sberbank Online personal account.
The size of the interest rate reduction is different for everyone. The new rate will not be set below 12%. But for some, this difference can be 2%, and sometimes more.

More to read: Driving in a lane designated for public transport

After reviewing the application and the rest of the package of documents, a Sberbank specialist informs about the decision made. Usually the entire procedure takes about 8 – 10 days. In this case, the lending conditions must comply with the standard conditions of the bank. For example, the loan term cannot be more than 30 years.

What does this mean for the borrower himself?

As a rule, when the mortgagee changes, nothing changes significantly. The credit terms remain the same, you just have to change the details for paying off the debt.

We have collected original reviews on this topic here, reviews from real people, many comments, worth reading.

In rare cases, the new creditor offers the debtor new terms, but you have the right to accept or refuse them. Sometimes it is beneficial to renew the contract at a lower interest rate, or to make an early repayment, in which part of the debt will be forgiven. But then you will have to pay tax on material benefits.

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You definitely need to check with the new creditor whether it is necessary to register the assignment agreement for the assignment of rights in the State Register. Sometimes this happens automatically, i.e. the bank itself sends all the necessary information, and sometimes the borrower has to independently contact the Unified State Register of Real Estate. In this case, you will have to spend money on paying duties.