When entering into a mortgage transaction, each borrower assumes certain obligations. The borrower becomes the owner of the property, but from year to year until the full payment of the loan debt, he has to adhere to certain rules.
Basic rights of the borrower
A person who has issued a real estate mortgage has the right to use the mortgage object. Here everything is quite clear and simple. The property owner can live in the property independently or with relatives. If desired, he can allow temporary residence or simply register in the new housing of third parties who are not even his relatives. If you move third parties or relatives into a mortgage facility that acts as collateral for the loan, you will need to notify your bank about this. Every person who is registered in mortgage real estate or lives in it is responsible for the safety of the object.
Under the contract, the owner of a mortgage home gets the right to dispose of the object, but this right has a number of certain restrictions, and if you understand well, the borrower will not be able to dispose of the object independently. The owner of a mortgaged property will not be able to give it away or bequeath it, because the object is collateral for the loan. To perform this procedure, a person will have to get permission from a financial organization. But banks very rarely go for such permits. The bank cannot document the sale of a mortgage apartment, but if the borrower wants to conduct such a transaction, they will face numerous difficulties. In most cases, lenders are opposed to the sale of mortgage real estate by the borrower, the exception may be situations when people have difficulties paying the debt on a real estate loan.
Every buyer has the right to live in comfortable and comfortable conditions, and therefore they do not need to take permission from the bank to carry out cosmetic and major repairs. But in the case of redevelopment without such permission will not work. And it will be given only if the borrower has documents issued by different authorities that allow such a procedure.
Rights of the lender bank
A financial institution also has certain rights to mortgage real estate. Even at the time of signing the loan agreement, the bank can give the borrower to sign an additional document stating that the borrower will be able to register only a certain number of persons in the mortgage object and with mandatory notification of the financial organization.
In the case of re-crediting or refinancing of a mortgage loan, the property may be registered several times in different contracts as collateral. If the borrower decides to use the mortgage object as collateral, they will need to tell their first lender about it and get the appropriate permission from them. At the same time, it should be noted that the bank that will refinance the loan must also agree to accept such a pledge.