Delinquency on a mortgage loan
Delinquency on loan payments is a fact that neither the lender nor the borrower would like to face. However, the stability of the financial situation of the borrower may change for the worse, which threatens the impossibility of continuing payments on credit obligations and there is a risk when the Bank sues and takes the property. Unfortunately, such a situation is not always possible to avoid.
If we are talking about a mortgage loan, the debtor, overdue payments, should expect the following consequences, which can hardly be called positive:
- Article number 1050 of the Civil Code of Ukraine indicates that in case of late payment on the loan, the financial institution that issued the loan funds, has the right to demand a refund of the entire amount. At the same time, the fact that the loan was originally issued for decades ahead is absolutely unimportant.
- Article number 33 of the law of Ukraine On mortgage gives the right to the financial institution that issued the mortgage loan, in case of non-payment and occurrence of debt on the part of the borrower, to apply for recovery of mortgage housing, that is, the Bank can sue for your mortgage loan. Recovery can be carried out both through a court instance, and based on the Executive inscription of the notary or based on the contractual document on the fact of satisfaction of legal requirements of Bank.
- Article number 40 of the law of Ukraine On mortgage indicates that the delay threatens to appeal to the Bank for foreclosure on the subject of mortgage, while such a recovery means further eviction of tenants from the mortgage apartment.
If you have already overdue loan payments or know that soon it may happen-please contact Kasyanenko & Partners Law Company. Remember that only timely legal assistance can help to avoid all or part of the negative consequences, which were discussed.
As the experience of Kasyanenko & Partners Law Company shows, if the borrower cannot pay all the necessary amount (specified in the contract), he tries to pay as much as he can. Naturally, this is a model of behavior of a conscientious and honest borrower, but can we be 100% sure that the Bank will also act honestly and will treat with understanding the problems of the borrower? However, incomplete or not timely payment threatens a large number of fines and penalties, so that the debt will increase exponentially.
The current Ukrainian legislation indicates that each payment made on the loan first goes to pay off fines and penalties, then-interest on the loan, and then-for the loan itself.
That is, if you are a borrower and you have formed a delay, it is quite possible that your payments you simply throw away, as you try to extinguish the penalty or fines, while not reducing the debt itself. The best solution is to ask for help from a professional lawyer from Kasyanenko & Partners Law Company, who will be able to analyze your situation and help you find the right way to solve the problem.
If you took out a mortgage before 2008, and now your credit debt is many times higher than the market value of your mortgage housing, be sure to ask for help from our lawyers.