't pay??? What to do? - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
The boom in mortgage lending seen in recent years, now could lead to serious problems for the banks...What to do if can't pay?The boom in mortgage lending seen in recent years, now could lead to serious problems for banks and borrowers. Solvency fell sharply last financial and economic crisis is forcing employers to cut staff salaries, and many companies and did go to the job cuts.To make life easier for the borrower in several ways - for example, to send him on a "vacation credit" or extend the term of the loanOn assurances of bankers, if the borrower was in a difficult financial situation, they are willing to go to meet him. And it was not the kind heart of financiers. Just more profitable for them to go for small concessions, than to collect the collateral and sell it. "With the Ukrainian legislation to take away, for example, an apartment is difficult. It's a long litigation, bidding and implementation. In the end, will be able to gain no more than half the value of the property," - says the first Deputy Chairman of the Bank "Contract" Paul Krapivin.At the same time giving benefits are not all. The understanding can only rely disciplined borrowers experiencing temporary financial difficulties. "The Bank is almost always interested in finding a way to support fair and effective customer who is experiencing temporary problems," says the Director of retail sales Swedbank Vladimir Dovgal.Selection criteria good borrowers to whom the Bank may show loyalty, several. First, the credit history of the client: whether the delay, how long the borrower uses the services of the Bank as paid on other loans. A strong argument could be the provision of additional collateral - apartment, house, car or land. If another property other than the mortgaged apartment, the client, will help the surety with a stable income.Vacation creditTo solve temporary problems of the borrower in several ways. First, the provision of credit holidays, when the customer at the time exempt from the payment of the loan. However, interest will continue to repay. Otherwise, banks would have to classify this loan as more risky, which for this debt will need to reserve additional funds.The term of the credit holiday most often does not exceed 6 months. "To defer payments for a long time the banks can't - we're not a charitable organization," explains Sergey Shcherbina. In this scheme, we must remember that the grace period will increase the load on the payments in the future, at the end of the holidays.Second, the renewal of the credit agreement for a longer period, and therefore, a recalculation of the amount of the monthly payments decrease. In this embodiment, too, there is a caveat. The action of the credit contract must end before the borrower will retire. "The increase in the period - one solution. But this is not always possible, because often the timing bump into a workable age," shares the experience of Paul Krapivin.Juggling currenciesThe third option applies only to loans issued in foreign currency. Some banks are ready to translate foreign currency loans in the hryvnia. Such operation is advantageous to the borrower only in one case: if the national currency will continue to depreciate. Otherwise, to change the currency of the loan has no meaning. After all, the amount due will be recalculated at the current rate, and the interest rate on the loan will only grow in 1,5-2 times. "Since switching to hryvnia interest rate will be at the level of 24-25% per annum. But in any case, this decision is made individually for each client," said Investment Bank in the First.