Is it possible to refuse a mortgage: conditions for concluding an agreement, how to terminate

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Many people do not have significant savings, allowing them to purchase real estate for permanent residence with their funds. Therefore, citizens are forced to apply to the bank for a mortgage loan. But often borrowers have problems repaying such a large loan. Therefore, the question arises whether it is possible to refuse a mortgage. The process depends on whether the required amount was transferred by the bank or not. It is allowed to terminate the loan agreement with the bank ahead of schedule, but the consequences of such a decision are considered not very pleasant for direct borrowers.

When can I opt out?

Often on various forums on the Internet, citizens ask: “Have you got a mortgage, can you refuse?”. This is due to the fact that people face serious financial problems, due to which they cannot cope with a serious credit burden. Therefore, people want to stop cooperation with the bank.

Is it possible to refuse a mortgage? This is possible in the following situations:

• not yet received approval from the bank for the submitted application;
• the application has been approved, but the contract with the credit institution has not yet been signed;
• the contract has been signed, but the funds have not yet been transferred to the real estate seller;
• an early signed contract is terminated after receiving the money, but there must be good reasons for this, confirmed by official documents.

If the money has already been received by the borrower, then refusal to cooperate is allowed only after declaring oneself bankrupt or early repayment of the existing loan. Early repayment of the loan is easy, for which you just need to write an application that is transmitted to the bank. After that, a calculation is made to determine the exact amount that must be contributed to repay the loan.

Finding the necessary funds for early repayment of the mortgage is difficult, since the apartment is pledged to the bank until the expiration of the contract, so it can only be sold in cooperation with the bank.

When is a waiver necessary?

Often people are interested in whether it is possible to refuse a mortgage if certain financial difficulties arise. Therefore, a waiver is required in the following situations:

• dismissal or reduction at the main place of work;
• pregnancy of a woman who is the main borrower;
• detection in a citizen of a complex disease requiring long-term and expensive treatment;
• assignment to a borrower of a certain disability group due to disability;
• appearance of dependents.

All of the above facts must be proven by official documents.

Can I refuse military mortgages?

This loan is provided only to military personnel with the participation of the state. It is at the expense of budgetary funds that a certain part of the cost of the acquired real estate is compensated. But even under such conditions, the military often has certain financial problems that do not allow him to cope with the existing credit burden on the military mortgage. Is it possible to refuse such a loan? Features of this process:

• A loan is provided only to participants in the NIS program, according to which, during the service, a certain amount of funds is accumulated on the individual account of the military, which is then directed to the purchase of real estate.
• In fact, only the military, who signed a contract before 2005, can refuse a mortgage.
• If the military is already included in a special mortgage registry, then the refusal to provide housing is unauthorized.
• Exclusion of a military man from the register is possible only after his death, dismissal or missing.
• If the service contract was concluded before 2005, then it is allowed to refuse to apply for a mortgage loan without negative consequences.

If the military has the right not to issue a mortgage, then he needs to draw up a special report, which is submitted to the authorities. This document indicates the need for an exceptionsoldier from the mortgage registry.

How to refuse a mortgage to the military in a different situation? Since the program does not provide for refusal, the only possibility for a serviceman is to file a lawsuit in court demanding that he be removed from the register. Reference should be made to the Constitution, which states that every Russian citizen has the right to freely choose their own housing. In judicial practice, there are cases when, with the correct formation of a claim and the choice of the optimal course of action in court, a military man was really excluded from the register.

Can I opt out when using maternity capital?

Matkapital is represented by a certain measure of state support for families. It is issued at the birth of the second child in the family. It provides about 450 thousand rubles. You can use these funds for a limited number of purposes, which include buying a home with a mortgage loan. But after using the mother's capital, borrowers often face the question of whether it is possible to refuse a mortgage. The nuances of this situation:

• there are certain problems with the return of mother's capital and the termination of the loan agreement with the bank;
• modern legislation does not provide for the possibility of terminating a loan agreement, therefore it is allowed to liquidate the debt only after it has been repaid by the borrower;
• to terminate cooperation, you can sell housing with the approval of the bank or even draw up with an institutionan additional agreement on the basis of which the apartment is sold through an auction conducted by the organization;
• after the sale of real estate, the proceeds are used to repay the loan;
• if any funds remain after this process, they are transferred to the former borrower;
• in this case, citizens need to return the funds received under the certificate to the PF;
• for this they can use the money received from the bank, but they are usually not enough to return the mother's capital, so they will have to return this amount through personal savings.

Therefore, before applying for a loan using maternity capital, you must be completely confident in your own financial capabilities.

Nuances in divorce

Many young people immediately after marriage choose to take out a mortgage to get a new apartment to live together. But marriages are not always strong and reliable, so often after a few years people decide to dissolve the marriage. In this case, the question arises whether it is possible to refuse a mortgage during a divorce.

Usually banks have a negative attitude towards making any adjustments to the loan agreement. Therefore, if borrowers decide to dissolve the marriage and abandon the mortgage, they can choose one of several options:

• one of the borrowers waives the right to this property, so he is excluded from the contract, and the apartment is re-registeredon the second borrower, who then continues to repay the mortgage loan on the same basis, but often the spouse excluded from the contract demands to receive half of the previously paid amount from the ex-husband or wife;
• housing is sold by direct borrowers, a bank or through an auction, usually a client of a banking institution who wants to buy an apartment at the expense of borrowed funds;
• sale of an apartment to any buyer who is willing to pay cash for it, which is then used by borrowers to fully repay the loan.

Most often, citizens prefer to use the first option, so the apartment is issued to one of the borrowers. A person who refuses real estate loses the part of the object previously registered to him, therefore he will not be able to claim it by any means in the future.

How to refuse a mortgage in Sberbank if the spouses do not want to register the object? In this case, the only solution to the problem is the sale of real estate in any way possible. The money received from this process is used to pay off the mortgage. If after that any amount of funds remains, then it is divided equally among the borrowers.

If you figure out how to give up a mortgage during a divorce, then the former spouses themselves will be able to decide which solution is considered the most relevant for them.

Can previously paid funds be returned?

Often there is a needterminate the mortgage agreement after a long period of repayment of the loan. Therefore, people have a question whether it is possible to refuse a mortgage and receive the previously transferred funds. Some of the money can be returned if a decision is made to sell the property.

After the implementation of the object, the required amount of money is initially sent to the bank to repay the loan, for which the employees of the institution recalculate. The remaining money can be used by former borrowers for any purpose.

In most banks, after receiving an application from a borrower to refuse to pay a mortgage, interest accrual is suspended. This makes it possible to significantly reduce the amount of debt. Such actions are due to the fact that the sale of an apartment often takes more than six months, and at the same time, borrowers simply do not have the opportunity to repay the loan on the same terms.

Rejection rules in different situations

The procedure for terminating cooperation depends on the stage at which the mortgage loan is processed:

• Loan approved but funds not disbursed. Can a mortgage be canceled after approval? Since the money has not yet been paid to the seller of real estate, the borrower may refuse to deal. To do this, you must promptly write a statement on the basis of which the previously signed contract is canceled. But if you used the services of a real estate agency to find an apartment, you will have to pay for them.
• The treaty was signed and alsothe money is transferred to the seller of the object. Is it possible to refuse the approved mortgage in this case? Under such conditions, there is no possibility of terminating the contract, since the bank simply will not be able to withdraw funds from the real estate seller. But there is a possibility that the seller of the apartment will agree to return the funds. The process must be completed on the day the mortgage is issued. In this case, the borrower will still have to repay the interest accrued by the bank. But many banks refuse to do so.
• The borrower has been paying off the mortgage for some time now. Is it possible to refuse a mortgage after approval under such conditions? To do this, it is advisable to engage in the sale of real estate. The procedure must be implemented with the approval and participation of a direct banking institution. The buyer can pay for the apartment with borrowed funds, for which the mortgage agreement is re-registered for him, and can also pay his own cash for real estate.

Often, citizens simply prefer not to transfer funds under an agreement, hoping in this way to terminate cooperation. In this case, there are many negative consequences for direct borrowers. The bank charges additional interest and pen alties. After a few months, they apply to the court. On the basis of a court decision, the apartment is confiscated and transferred to the bank, which sells it at auction, and the money received is used to pay off the debt. At the same time, citizens' credit history deteriorates, and they lose the right to independently regulate the process of selling an object in order to eventually receive some part ofits value.

Can I cancel a loan through the court?

Is it possible to refuse the mortgage of Metallinvestbank or another credit institution when filing a claim with the court? Such cases are often heard in court. This is due to the fact that many borrowers simply stop transferring mortgage funds when financial problems arise. Banks are forced to go to court to enforce the recovery of funds.

The court satisfies the claims of the plaintiff under such conditions, so borrowers are deprived of mortgage property, which becomes the property of the bank. The institution is engaged in the sale of apartments through auctions. The funds received are used to repay the loan, but if free money remains after that, they are paid to borrowers.

Additionally, the borrower himself can apply to the court if the bank refuses to restructure the mortgage. In this case, it is important to provide the court with evidence of the deterioration in the financial situation of the citizen, as well as confirmation that the borrower tried to solve the problem in a pre-trial way, therefore, he applied to the bank with an application for restructuring. Under such conditions, the court does not cancel the mortgage, but may force the banking institution to make concessions.

Can I cancel my mortgage insurance?

Giving mortgage loans is considered a risky process for any bank, as there is always a chance that the collateral will be lostfor various reasons, or even the borrower will die or lose his ability to work. Therefore, banks insist on issuing at least two insurance policies:

• Purchased Real Estate Insurance;
• life and he alth of the main borrower.

Purchasing insurance for an apartment is mandatory based on legal requirements. Can I opt out of mortgage insurance? If this insurance policy is not renewed annually, this may be the basis for the bank to apply to the court for early termination of the mortgage agreement. In this case, the borrower will have to repay the debt, and bailiffs will influence him in various ways. Therefore, apartment insurance is mandatory for every borrower.

Life insurance should be carried out only with the consent of the client. Banks cannot insist on such a policy. But at the same time, they often simply refuse to provide borrowed funds if the potential borrower does not want to pay for such insurance. Often, even in the loan agreement itself there is a condition that if the borrower for various reasons does not take out life insurance, this leads to an increase in the interest rate on the mortgage. Therefore, citizens are forced to buy such a policy every year before the end of the loan term.

When insuring a mortgage, can I refuse to buy a borrower's life protection policy? The procedure can be performed, but this usually increases the interest rate on the loan.

If the mortgage is paid off ahead of schedule, then you can return part of the amount transferred for the insurancepolicy. To do this, you need to contact the insurance company where it was bought. The following documentation is handed over to the employees of the institution:

• copy of the passport of the insured person;
• application for the return of a certain amount of funds transferred for an insurance policy;
• certificate from the bank confirming the end of cooperation in connection with the early repayment of the mortgage;
• copy of direct loan agreement.

Based on these documents, a recalculation is carried out, so the applicant receives some of the amount previously paid for the insurance policy. Insurance companies have no right to refuse to return this money.

If a citizen is faced with a refusal, then he can write a claim to the company. If there is no response to this application within two months, then a lawsuit is filed with the court.

Conclusion

Refusal from the mortgage is possible before the direct transfer of money under the loan agreement. It is allowed to terminate the agreement ahead of schedule, but for this the borrower will have to lose the purchased property or repay the loan from personal savings.

Additionally, you can refuse insurance, if such an opportunity is provided for by the provisions of the loan agreement.