Implementation of the collateral by banks

Once the borrower could not repay the debt, his property goes under the hammer. In order to issue a credit, a bank must be confident in the solvency of the borrower. Any lending institution requires warranty refund. It is clear that a bank customer has a small savings, which he spends on the implementation of its tasks, so the extra money he does not. In most cases, a guarantee of repayment is collateral. What lay? Collateral may be movable or immovable property. As a rule, the collateral on a mortgage in favor of the property (including land), on car loans - car loan for business - property companies, intellectual property rights, products, equipment, etc., and on consumer credit - all of the above listed and other valuables. In special cases, lenders are taking unusual items: fotolabaratorii, mannequins, excavator, chickens and even the bottom of the creek. To reduce the risks many banks initially underestimate the cost of collateral, sometimes it can reach only 50% of the market of its value. This is done specifically: the bank bears the risk of subsequent sale of collateral, which, when high quality can not be demanded in the market. When taken away? To ensure that your property is transferred to the bank balance you have to be malicious defaulters: hiding from the lender or not to attempt to repay your loan (strongly advise you not to do). In any case, the question of withdrawal of bank collateral always solved individually and the decision of the court. This is a long procedure that may take months or years. What to do with the bank? The main objective of the bank - credit activities. You have taken the property he did not need. It is only the equivalent of your money debt. Equivalent to cash this and return the money in the bank, he sells it. It is worth noting that if the collateral is sold to more than the amount owed, then the difference shall be returned to the borrower. Where to buy? As a general rule, collateral banks sold at a significant discount. Here banks play the role of a shop "second hand". Offers for sale of the collateral the banks can be found on the official websites of the banks themselves or ask the structural units of the company. For convenience, many banks also issue credit for the purchase of the collateral. For example, "VTB 24" individuals presents a unique opportunity to buy real estate, vehicles or equipment on credit, with the ruble rate to 7,75% (in the currency of up to 10%) for up to 50 years with an initial payment of 20%. On such terms proposed 1-bedroom apartment in suburban Krasnogorsk, area of ??48 sq m per 3.824 million rubles. A site of Bank of Moscow can be found «Hymer camp classic 524" 2006 model year only 1,560,000 rubles., While private traders can buy him at least twice as expensive. The choice represented by thousands of potential buyers of lots. According to the tendency of financial market regulators, in Russia, a growing number of overdue loans. Implementation of the collateral the banks will inevitably increase. Bankers are forced to offer favorable terms to buy these things. Banks can turn into a kind of supermarket economy class, where you can inexpensively purchase a large object. According to the economist Mikhail Khazin, this situation could lead to significant price reductions in real estate.