How to take a mortgage with a bad credit history: legal advice

Mortgage loans are one of the most popular types of lending in the world. The opportunity to buy your own housing immediately, and not after many years of infringement of yourself literally in everything, attracts more and more people. However, obtaining a mortgage with a bad credit history can be a serious problem on the way to a dream of your own corner.

What to do in this situation? Where does the stain on financial reputation come from and how to solve the issue with little blood? These and many other issues are very interesting to the reader, who at least once faced a denial of the mortgage.

What is the essence of a mortgage loan?

First, let's talk about what a mortgage and credit history are, how they are related to each other and whether one can affect the other.

The term "mortgage" refers to this type of lending, when the debt is purchased housing, which becomes a bank guarantee until the repayment of the loan. In this case, the buyer, although considered the owner of the apartment, but can not produce any legally meaningful actions with it. If the client stops paying bills before the full repayment of the loan, penalties are included. In the end, the bank can and did not sue the apartment from a negligent borrower. In this case, a person runs the risk of remaining without money, and without housing.

In addition to stopping or delaying the repayment of the loan, there are other grounds for terminating the contract:

• Deterioration of housing, non-compliance with operating conditions;
• Transfer of premises to third parties;
• Violation of insurance conditions;
• Redevelopment of the premises, changing the characteristics of housing.

Taking into account the fact that such loans are paid a couple of decades, banks very carefully check those who are given a mortgage. They are trying in every way to reduce the risk of debt default. For an average bank, the ideal borrower looks like this:

• Age - about 27-30 years. This is enough to ensure that the client has not yet retired at the end of payments.
• High official salary. If your earnings are at least three times the monthly payment for a mortgage, you will become a welcome customer of any bank.
• An impressive work experience in a good company, preferably in a prestigious position.
• A stable family situation, as well as a couple of children will only strengthen your position. In addition, it is desirable that the spouse be employed with a good salary.

But even if you meet all these criteria and you need a mortgage, a bad credit history can play a cruel joke with you.

Where does the credit history come from?

Everyone who wants to apply to the bank for a mortgage, first of all, must understand what the concept of "credit history" means, how it is formed, where it can be viewed and what it affects. Then, instead of pestering the thresholds of friends and acquaintances with a cry: "Help to take a mortgage with a bad credit history!" - a person will be able to independently influence the situation.

Before making a decision to make a loan, any financial institution must contact the BCH (credit history bureau). There information about each person who has borrowed money at least once in a life is entered. Such databases include information about which loans were issued by this or that person, whether payments were accurate, whether there were delinquencies. If there have been violations of the contract, a record of this will also appear in the credit history.

What is a "bad credit history" and what does it affect?

As you already understood, the stain in CI is an excuse for refusing to obtain a mortgage. All credit institutions have access to the bases without exception. There are several criteria that are usually checked. For example, these are:

1. Failure to comply with the terms of the contract, delinquency of payments, full refusal of the obligations undertaken.
2. The reasons not depending on the borrower, but worsen CI. These may be errors in the details, payment through another bank, delayed payment, incorrect calculation of the last installment, other factors.
3. Fraudulent actions. There are times when swindlers make out a loan using other people's documents. Of course, they are not going to return money. In this case, even if the criminal acts of third parties are proven, your CI will be thoroughly spoiled.

Of course, in the last two cases the client seems to be not to blame, but he will need help with a mortgage.

How to check your own credit history and why you need to do it

To avoid unpleasant situations, it is best to take care of knowing your CI in advance. The fact is that the bank does not have to somehow motivate its refusal, but more often employees of financial institutions refer to it. In addition to all the above factors, even minor events can spoil it:

• A small (in a few days) delay in consumer credit;
• Early repayment of a loan without agreement with the bank;
• Failure to fulfill its obligations if you acted as a guarantor for a relative's or friend's loan;
• A debt of 2-3 rubles, which arose due to an error in the calculations.

To avoid trouble, take the rule of checking your credit reputation at least once a year. Moreover, it is quite simple to do this:

1. First, you need to apply to a special unit of the Bank of Russia, which is called the "Central Catalog of CI." There you need to get information about where exactly your story is located.
2. Now it is enough to send a request to a specific CRB and get the necessary information. Once a year, you can do it for free.

How to take a loan with a tarnished reputation

Whatever information you receive, do not despair. Remember: you can still take a mortgage. Of course, it is not worth a bad credit history to brag about. But the situation can be corrected. How? There are several ways:

• Filing of documents in a small financial institution, there verification may not be so meticulous;
• Seeking assistance from intermediaries;
• Submission of documents for a mortgage to the bank that has already granted you a loan once;
• Obtaining a loan from the developer;
• Registration of the lease with redemption.

There are also ways that you should not resort to. It's no secret that there are organizations on the services market that are ready to fix documents for a fee. To do this, as you understand, is illegal. Can end with sad consequences.

Also in the field of bank lending is quite common phenomenon such as commercial bribery. This means that some employees of the financial institution are ready to turn a blind eye to the negative credit history of the client. Of course, not just so, but for a solid reward. Do not settle for this. Such actions are also illegal.

Is it possible to fix a bad story

Mortgage with a bad history is a very troublesome business, but quite real. If you find errors in CI, you can file a petition for changes. In this case, you will have to prove that the information contained in the credit history is unreliable and subject to correction. Your application will be reviewed. By this point, you need to prepare documents that characterize you as a trustworthy client. Such securities can be:

• Checks confirming the timeliness of payments;
• Extracts from financial institutions about the absence of outstanding loans;
• A certificate from the police that the loan was issued by fraudsters on your documents;
• Other documents confirming your innocence.

Based on the results of the audit, a decision will be made to amend your credit history. If you were given, and you do not agree with the results of the audit, you can apply to the court and defend your rights there.

If violations on your part did take place and now you do not understand how to take a mortgage with a bad credit history, you should proceed as follows. Take in any bank a small consumer loan to buy, for example, household appliances and carefully pay it. Repeat these steps a few more times. Thus, you will correct your financial reputation, and small flaws in the past you will be forgiven.

In debt with the developer

Now let's talk about how to take a mortgage with a bad credit history, if it failed to fix it and the bank refused. In this case, you can try to contact the developer directly. Not very large construction companies quite often need to attract outside capital. To do this, they are forced to contact the bank for a loan. However, this is not so profitable, since you have to pay interest.

A more advantageous option is to conclude an installment agreement with the client. Thus the builder receives additional money for construction, and physical persons - the opportunity to pay the cost of housing parts.

With obvious advantages, such as the absence of interest, commissions, assessment fees and insurance, this method also has a significant drawback - a short installment period. Rarely, which firm will agree to conclude such a contract for a period of more than 5 years. In addition, you will certainly require a fairly solid first payment. Most often it is about 30% of the cost of housing.

Contacting a small bank

If you are thinking about where to get a mortgage with a bad credit history, try to contact a young bank or a small financial institution. Such institutions are fighting for each client and quite often reduce the requirements for candidates for mortgage registration.

In addition, such institutions often employ specialists who do not have sufficient experience in the field of lending. Simply put, they just do not know where to look, but they have a great desire to conclude a contract.

But this method has its drawbacks. Most often, these are quite high interest rates or the collection of additional commissions. In this way, small banks tend to reduce the risk of non-return.

Guarantor + pledge

Another option of how to take a mortgage with a bad credit history is to provide a large additional collateral and several guarantors.

Since no bank will cooperate with unreliable customers, you will have to convince its employees that you can be trusted. To begin with, you need to enlist the support of a person who is impeccable financially and who has a solid income. Even better, if there are several such guarantors. In this case, your negative credit history will no longer look in the eyes of the manager too much. After all, if you fail to fulfill your obligations, the debt will be demanded from a surety.

If you can give the bank something expensive, already owned by you as property, it will also significantly increase your chances of getting a mortgage. It can be a dacha, an expensive car, a country cottage, an antique piece of jewelry and so on. At the same time, it is worthwhile to understand that the purchased apartment will also be a pledge. And if you fail to fulfill your obligations, you can lose both collateral and remain with nothing.

We increase the amount of the first installment

Almost all mortgage loans are issued with a minimum (up to zero) first installment. Therefore, if you do not know how to take a mortgage with a bad credit history, but have enough free funds, try to issue a loan with a large initial payment. If you are able to contribute at once about 50% of the cost of housing, the bank is likely to close its eyes to negative history. This is because, even if you can not pay in the future on a loan, the bank will easily sell your apartment for half its real value and return it to itself.

We address to the intermediary

Sometimes the customer's credit history is so sad that he may need help with a mortgage. For this, there are special credit brokers. These people will offer you a list of banks that are ready to talk with problematic clients. For an additional fee, the broker will assume all the negotiations and is practically guaranteed to provide you with a mortgage. True, the services of such assistants are expensive, but sometimes this is the only way out.

We make an apartment in leasing

There is another, rather new for Russia way of registration of a mortgage with a tarnished credit reputation. This is leasing housing. The essence of it is that a person concludes a rental contract with subsequent repayment. Monthly expenses in this case consist of the cost of rent and the amount of payment for the loan. Credit history in this case does not play any role. After all, until the moment of payment of the whole cost, the owner of the apartment is not a client, but a financial organization.