How long does it take for the bank to issue a mortgage after the mortgage has been fully repaid? | Moscow

Why do you need a mortgage for an apartment and what does it look like?

A mortgage note is a security document confirming the transfer of an apartment as collateral to the bank. If the borrower stops paying the loan, the bank can do 2 things:

1. Repossess and sell the mortgaged property.
2. Sell ​​or transfer a mortgage to another bank.

The subject of collateral can be:

• Apartment.
• A private house.
• Non-residential premises.
• Country cottage area.
• Industrial buildings and structures.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

Until the mortgage is paid, the mortgaged property is under the bank's encumbrance. After the loan is fully repaid, the mortgage is canceled and the owner can dispose of the property at his own discretion. If the apartment is pledged, the borrower must ask the bank’s consent to carry out any transactions. He will not be able to sell, donate or exchange the apartment without the bank’s permission.

Why do you need a mortgage for an apartment?

1. The borrower who takes out a pledge receives more favorable lending conditions. This does not apply to all banks.
2. The bank receives a money back guarantee. If the borrower stops paying the loan, the document allows the bank to sell the mortgaged property and return the money.
3. The bank may attract third-party investments. The law allows the lender to sell mortgages to other banks and make money from it. The conditions for the borrower do not change.

What should the document contain?

The requirements for the content of a mortgage and the procedure for its execution are prescribed in Chapter 3 of Federal Law No. 102 “On mortgage (real estate pledge).” There is no single form for this document.

By law, this paper must contain:

1. Name and identification number. The name must include the word “Mortgage”. The number is usually indicated in the header of the document.
2. Information about the bank (mortgagee). Legal address, full name, license of a banking institution, checkpoint, tax identification number.
3. Information about the borrower (mortgagor). Individuals indicate their full name, registration address, passport details, SNILS. For legal entities, you must provide the full name of the organization, legal address, TIN, KPP. In rare cases, the mortgagor is not the borrower, but another person. Then indicate his data.
4. Information about the mortgage agreement. Indicate the document number, date of registration, loan amount, repayment schedule, monthly payment amount, interest. If the loan is taken out in a foreign currency, it is necessary to register the conversion rate of this currency into rubles. This is necessary to correctly determine the cost of the loan and interest. Pay special attention to this point - violation of the terms of the agreement gives the bank the right to seize the collateral.
5. Description of the collateral property. Indicate the address, area of ​​the property, number of rooms, cadastral passport number.
6. Assessed value. The document also states the estimated value of the property, indicated by an independent expert.
7. The presence of other encumbrances on the object (rent, lease, arrest) . If there are no encumbrances, write this down.
8. Stamp and signature. Signatures of the parties, seals (for banks and legal entities), date of preparation of the document.

Attention! You sign a document that will allow the bank to take your apartment if the mortgage agreement is violated. Carefully check the contents of the mortgage for errors. Make sure that the data matches the contents of the loan agreement. If further disagreements arise, the court will rely on the mortgage.

Example of a mortgage form

You can see what a mortgage note looks like in the visual preview window below. You can follow this link and open it on your computer in Word.

One more example:

Mortgage concept

A mortgage in a bank is a document certifying the right of the mortgagee (in our case, the bank) to an object purchased using loan funds (). It confirms the registration of a mortgage on an apartment or other real estate. When situations defined by law occur, the bank has the right to use the mortgage to return the borrowed funds issued to the client (). It guarantees repayment of the loan regardless of the financial situation of the borrower through the sale of property.

✅It is worth noting that a mortgage without a mortgage is possible. The bank has the right not to register it, but, as a rule, the security is still registered when issuing a home loan.

A mortgage on an apartment under a bank mortgage can be issued in paper or electronic form. Legally, both formats of securities are equivalent (). Banks are increasingly switching to registering electronic mortgages, because this saves time and allows you to verify the fact that the loaned object is pledged.

Registration of a mortgage is completely under the control of the bank; the borrower does not participate in this process. He only needs to put his signature on the security and submit it for registration to government agencies. Or give consent to issue a mortgage via remote communication channels.

The document is signed by the bank issuing the loan when drawing up a loan agreement or after registering ownership of a new building. Where is the mortgage note kept after the mortgage is registered? The original mortgage remains with the lender, who places it in his own escrow for safekeeping. It can only be transferred to the client after the mortgage loan has been fully repaid. Without this copy of the mortgage note, it will be impossible to remove the mortgage on real estate.

The mortgage obligation fulfills the following functions:

• certifies the mortgagee's right to the property;
• allows you to attract fresh financing through the sale of mortgages.

Recommended article: How to take out a mortgage without the participation of a spouse

In the latter case, the mortgagee changes. The right to sell a security is usually provided for by banks (). Although mortgage clients do not pay any attention to this point when signing documents, and then they are surprised on what basis the lender transferred the mortgage to a third party.

✅Please note that the terms of the mortgage and loan agreement with the bank must match. Be sure to check their compliance when signing the documentation.

❗Important to know: What is an Electronic mortgage note

The bank sold the mortgage - what does this mean for the borrower?

What does a mortgage by force of law mean and when does it arise?

List of documents for registration of a mortgage

For registration they usually provide:

• Borrower's passport. Most banks require permanent registration - you can register in the apartment you are purchasing.
• Independent appraiser's report. Needed to confirm the market value of the property. Mortgage appraisals are carried out by companies accredited by the bank. The cost of the report ranges from 2.5 to 5 thousand rubles. It must be submitted to the bank no later than 6 months from the date of registration.
• Purchase and sale agreement, extract from the Unified State Register or certificate of ownership.
• Insurance policy for the purchased apartment. If the home burns down or is destroyed for other reasons, the insurance company will pay the bank the remaining debt on the loan. Insurance provides a guarantee that the mortgage will be paid under any circumstances.
• Cadastral passport and a copy of the floor plan of the property.
• The act of acceptance and transfer of the object when purchasing an apartment in a new building.
• Marriage certificate (if available).
• Mortgage agreement, guarantee agreements, if any.

Important! The bank prepares a mortgage for the apartment along with the loan agreement. The borrower only checks, signs and registers it with Rosreestr. The complete list of documents may vary depending on the situation, bank, and regional laws. Therefore, always check with the bank what documents need to be provided.

Applying for a mortgage - step-by-step instructions

According to the standard scheme, document preparation is carried out in 5 stages. Step-by-step instructions are provided below.

From July 1, 2021, it was allowed to register mortgages electronically. We'll talk about this below. Now let's look at the process of registering a regular paper mortgage.

Stage 1. Sign the document at the bank

Typically, a mortgage note is signed when a loan agreement is signed. It is composed by a banking institution. The client provides the necessary package of documents, carefully checks the contents of the paper and signs it.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

The mortgage is the most important document for you. According to it, you leave your apartment as collateral to the bank. Errors in a loan agreement are not as bad as errors in a mortgage. If there is something wrong with this document, you will not be able to remove the encumbrance from the apartment. You'll have to sue the bank to do this. You will waste time and money. Always check the paper carefully and compare it with the loan agreement. Mistakes will cost you dearly.

Stage 2. Pay the state fee

If the collateral is mortgaged real estate, then the mortgage is registered along with the right of ownership. To register property rights, you must pay a state fee.

The state duty is:

• 2,000 rubles for individuals.
• 220,000 rubles for legal entities.

State duty is paid in 3 ways:

1. At any bank.
2. At the Rosreestr box office.
3. In the terminals.

Be sure to take a receipt or check to confirm that you paid. Without a receipt, documents for further registration will not be accepted.

If the bank already owns real estate as collateral, there will be no mortgage costs. They only pay for the title.

Example:

Viktor Petrovich takes out a mortgage loan for a new apartment, and leaves his existing apartment as collateral. He will pay the state fee only for registering property rights. The mortgage will be registered free of charge.

Stage 3. Register a mortgage through the MFC

You should contact the MFC with a signed mortgage note, a receipt for payment of the state fee and a package of documents. You can contact any center that is closer and more convenient. Center employees check all submitted documents and issue 2 receipts to the mortgagor.

The receipts will indicate the list of documents submitted and the deadline for issuing the extract. The second copy of the receipt must be given to the bank.

Next, the MFC sends the client’s documents to Rosreestr for registration. If there are blots or corrections in the documents, they will not be accepted. Wrinkled papers are also not accepted.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

The MFC acts as an intermediary between Rosreestr and the borrower. Registering a mortgage through the MFC is more convenient, but longer. When you contact Rosreestr directly, the mortgage will be registered faster. However, at Rosreestr you usually have to stand in lines. Therefore, pledgors more often send documents through the MFC.

The standard registration period is from 3 to 5 working days. It takes another 2–4 days to transfer documents from the MFC to Rosreestr.

Stage 4. Receive documents from Rosreestr

You should come to Rosreestr by the appointed date. To receive completed documents, you must provide a receipt received from the MFC. An employee of Rosreestr will issue the pledgor with an extract from the Unified State Register of Real Estate with a note indicating the presence of an encumbrance in the form of a pledge. Rosreestr will send the original mortgage note to the bank.

Important! The mortgage note is drawn up in a single copy and signed once. There can be any number of additional agreements and duplicates - at least 15, at least 20. The original remains unchanged. Reprints and corrections are not permitted.

Stage 5. Get a duplicate from the bank

After registering the mortgage, be sure to ask for a duplicate of it at the bank. A duplicate is needed to confirm the terms of the pledge in case the original is lost.

A duplicate is issued free of charge, and the appropriate mark is placed on it. Check it carefully to ensure it matches the original. Even one minor mistake can invalidate the mortgage.

Example:

The bank issued Vitaly a duplicate mortgage note with errors. The bank lost the original. Vitaly will have to prove his case in court. He will win the trial, but will waste his time and money. If Vitaly had asked to make a duplicate after registering the document, there would have been no problems.

How bankers describe the situation

• “The Office of the Federal Registration Service (Office of the Federal Registration Service. - RBC), departments of Rosreestr, Rosreestr archive, Cadastral Chamber do not accept applicants due to quarantine. Information directly from the registration company July 14, 2021. All entries in the MFC from legal entities are scheduled ten days in advance,” said a representative of Otkritie Bank. He estimates that the bank received only 10% of the mortgages submitted to the registration authorities. The registration period at the MFC has increased to 14 days.
• The MFC introduced restrictions on the number of transferred packages; because of this, it was not possible to quickly hand over the entire volume of mortgages accumulated during self-isolation, noted a representative of Sberbank.
• The procedure takes approximately twice as long, admits a representative of Alfa Bank. He connects this not only with the operating mode of government agencies. Another reason is the transition of the MFC and Rosreestr departments to a new information system for property accounting (FGIS EGRN).
• According to Oleg Komlik, director of the Digital division of Dom.RF Bank, there are queues for registration and issuance of mortgages in some regions. He did not name specific subjects.
• The situation with registration of mortgages differs in different regions, said a representative of Uralsib. “In some places, MFCs did not accept clients for some time, some only accepted clients by appointment. Registration is currently by appointment only. The queue depends on the region, on average we sign up one and a half to two weeks in advance,” the RBC interlocutor said.
• VTB also associates delays in processing mortgages with the peculiarities of the work of registration authorities. “We work individually with each request, trying to resolve it as quickly as possible and speed up the process of issuing mortgages. We sincerely apologize to all clients who encountered this inconvenience,” said a bank representative.
• MKB, Raiffeisenbank, Sovcombank, Unicredit and Ak Bars banks stated that they did not encounter problems with the issuance and registration of mortgages. The remaining organizations from the top 15 by mortgage portfolio size did not respond to RBC's request.

Read on RBC Pro
Hiring with a demotion: is it worth hiring a former manager for a line position? Founder of VkusVill: if the employee is not mistaken, he should be fired RBC Pro: run, be patient, look for profit. How to work with a toxic manager Prices for new Moscow buildings are almost at their peak. What should investors do?

An RBC interlocutor at a large bank noted that in some regions there are quotas on the number of coupons for registration in Rosreestr or the MFC: “No more than two coupons per week per employee.” According to his estimates, the situation with mortgages will normalize only by the end of the year.

The problems of mortgage borrowers are connected not only with queues at registration authorities, says managing partner Maria Litinetskaya. “In a number of banks, some employees were laid off or sent on forced leave, and today the shortage of personnel can complicate the work of organizations,” she explained.

What to do after paying off the mortgage and returning the mortgage?

After the mortgage is repaid, the bank cancels the mortgage and returns it to the client within a few business days. The acceptable period for returning paper is 1 calendar month, unless otherwise specified in the loan agreement. After receiving a mortgage, the encumbrance must be removed from the property.

To remove the encumbrance from an apartment, the borrower must:

1. Pay off your mortgage in full.
2. Obtain a certificate confirming full repayment of obligations.
3. Apply for a mortgage.
4. Withdraw a security from the bank. The bank must put a note on it that the loan has been repaid.
5. Come to the MFC or Rosreestr along with the received mortgage and a certificate from the bank.
6. Write an application to remove the encumbrance.
7. Receive an extract from the Unified State Register of Property Rights and a canceled mortgage.

Only after all these actions do you have the right to dispose of the property at your own discretion. We recommend keeping the mortgage.

Contents of the document

is a security, which means it is subject to the requirements of the Civil Code of the Russian Federation. In particular, it may be considered unlawful if the text of the document lacks important points. is drawn up by the bank's legal department in accordance with all legal requirements, taking into account the interests of both parties. They are the mortgagee and the pledgor, that is, the bank and the borrower (and other owners of the mortgaged property, if any).

What does a mortgage note look like? Like a regular bank document. However, the security must contain the following details:

• document's name;
• information about each mortgagor (his name and passport details);
• information about the mortgagee (name of the bank, address of its location);
• basic data of a loan agreement secured by collateral;
• information about borrowers, if they are not mortgagors;
• the amount of current mortgage debt;
• credit rate;
• housing loan repayment time;
• information about the mortgaged property (type of property, its address);
• how much the loaned property is worth according to the appraisal report;
• on what basis does the mortgagor’s right to this property arise, registration data;
• an indication of the presence of other restrictions on the use of property, except for collateral in favor of the bank;
• signatures of the pledgers.

Next, the registering authority puts a mark on the registration of the mortgage. It also contains the date of issue of the security to the bank representative and other marks if necessary. Where is the mortgage note number indicated? It can be clarified in the text of the document itself (in a special section called that) or by contacting your mortgage bank.

Recommended article: Extract from the house register for a mortgage - how to get it?

Latest news and innovations for 2021

Making and registering mortgages is simplified. The possibility of electronic registration has become available, and Sberbank has completely canceled the issuance of paper mortgages for some mortgage transactions. Let's take a closer look at the latest news.

Registration of an electronic mortgage on the Rosreestr website

Electronic mortgages are valid from July 1, 2018. The borrower fills out the form on the official website of Rosreestr or on the State Services portal. Electronic signatures of the mortgagor and the mortgagee are placed on the mortgage note. The package of documents is provided in electronic form.

An electronic document eliminates the possibility of its loss by the bank. The security is stored electronically in the depository. This is a company that specializes in securities transactions.

Advantages of an electronic mortgage:

1. The bank will not lose the electronic mortgage, as it can do with a paper one.
2. There is no need to go to the MFC - the bank itself sends an application for registration.
3. After registration, the electronic document is automatically transferred for storage to the depository specified by the bank.
4. After paying off the mortgage, you do not need to write an application to cancel the paper.

conclusions

A mortgage is a very important document. We can say that this is the most important paper for the borrower. According to it, he leaves his own housing as collateral to someone else's organization. In most cases it is the only one.

Let's draw the main conclusions from the article:

1. The mortgage guarantees the lender the return of funds. Until the borrower pays off the mortgage, he has no right to carry out transactions with the collateral real estate without the consent of the bank.
2. When drawing up and signing a mortgage, you need to carefully check everything. This security has priority over the loan agreement. In case of possible disputes and disagreements, the information from the mortgage will be considered correct.
3. The original paper is kept by the lender.
4. After registering the mortgage, be sure to request a duplicate of it.
5. While the mortgage is being paid off, the owner of the mortgage may change. Nothing will change for the borrower. It is only possible to change the account details for transferring mortgage payments.