Money Wise Blog

The clients who have been checked up by time

Except crediting of “teapots” and furniture, a number of banks try to advance card credits. However, till now credit activity of the majority of banks in this direction has been focused on employees of those companies who have salary projects in this financial organization, and also on the former clients who have proved in the past the decency.
If with some clients all is more or less clear — banks offer the physical persons getting credit through their wages, to arrange a credit card with a limit at a rate of 1-6 monthly salaries under 33-48 % annual, in a case with a choice of private clients all especially individually. For example, recently some bank have dispatched letters to some former clients with the offer to arrange a credit card (the limit was established to everyone individually, but no more than 15 thousand cost — 36 % annual).

According to the high-ranking employee of one of the bank, the response of clients was unexpectedly high. To 15 % of the former clients received letters, have become interested in the offer, — the financier states. The similar share was conducted recently by other banks. Its many former borrowers have received the offer to arrange the credit for the sum to 75 thousand. The good credit history was the basic criterion of a choice of the new-old borrower. Now the offer on the credit was received by the clients regularly paying under loans in the past. But in November we will start to consider requests for registration of credit cards from all interested persons, — have reported in some banks.

However, the absolute leader of bank sympathies is taken by car crediting. Almost half of banks from a top-50 on the size of assets are now ready to give out loans on car purchasing. Effective cost of a loan on purchasing of the new car fluctuates around at 18-30 % at the initial contribution from 15 % (without taking into account special programs and propositions).

Can you remember those good times when everybody could take a credit if one needed cash? And just imagine the state of those who have to bear that burden nowadays when the world economy is facing tough times. And for those people having loans the question of credit monitoring is as urgent now as never before. It is not only about loan monitoring, this also helps save money, time, and nerves and be quick in solving loan related issues. Those who are searching for a place where to learn about credit report with score, are invited to go to this credit report monitoring site – there is lots of information about loan monitoring and how to order that service.

In addition we haven’t forget about possibilities provided to us by digital technologies. The Web network provides us with a really unique chance to learn what we need or to get anything at the best price on the market.

In September the portfolio of national currency credits which have been given out by banks to the population, has increased by almost 1%. The basic driver of growth is consumer and card crediting. The mortgage and auto credits, as well as earlier, are in anabiosis.

Last month became the first push after crisis when banks have considerably increased a portfolio of national currency credits which have been given out to the population. According to national bank, in September financial organization have given to physical persons more then 400 000 credits in national currency. More than it has been extinguished for the same time (portfolio growth — 0,8 %).

It is more than in eight times exceeds a similar indicator for July-August (the period when portfolios have ceased to be reduced for the first time). September growth of the credit portfolio nominated in national currency is caused first of all by activation of consumer crediting and issue of no-purpose cash and card credits. The new business season has begun. A number of banks have entered into the market with offer to take the credit for consumer needs. Apparently, the population has actively responded to possibility again to buy technics on credit, — the chief of department of retails in one of the banks marks.

Now target credits on purchasing of the goods give out five banks, but financiers don’t exclude that shortly their numbers considerably will replenish. At the majority of banks promptness of liabilities is insignificant — about one year, therefore short-term consumer crediting can be interesting to them. Besides at a competent risk management is very much profitable», — tells the vice-president of of credit department.

Bankers conditionally divide the financial organizations which are giving out purchase credits of home appliances and electronics, on two groups. The first are banks for which retail crediting is profile. Cost of consumer credits given out by them now constitutes 60-100 % annual.

The second are the banks which are engaged in consumer crediting at the desire of the large corporate borrowers. There are the banks, which in itself, probably, and haven’t started to credit purchasing of TVs and phones, but home appliances supermarkets are their big clients. And they persuade banks to develop crediting, to improve the indicators and to have possibility to serve the credit in the same bank, — the trustee of bank explains.

Can you remember those good times when practically anybody could take a loan if one needed funds? And just imagine the state of those who must bear that burden nowadays when the world economy is facing hard times. And for those people having loans the question of credit monitoring is as urgent now as never before. It is not only about loan monitoring, this also helps save money, time, and nerves and be quick in solving loan related issues. Those who are looking for a spot where to find out about credit reports, are welcomed to go to this credit report monitoring site – there is lots of information about credit monitoring and how to order the service.

Also we haven’t forget about possibilities provided to us by digital technologies. The Web network provides us with a really unique opportunity to discover what we require or to get anything on the best terms which are available on the market.

One more feature of refinancing which can become for you unexpectedness are additional financial expenditures. Quite probably that you should pay to new bank the commission for consideration of the credit request, credit issue, for opening and loan account conducting. “Additional expenditures will be connected with a notarial certification of the agreement of pledge, entering into the state registers of burdenings of property of the information in a pledge subject, expenses under the insurance as it is necessary to change in the insurance agreement the name beneficiary (from one bank for another) or to insure a pledge subject if he is not insured. Besides, the previous bank can establish the commission for granting of the permission to repeated pledge”, – the assistant the head of department of support of credit operations adds. The subtleties connected with the insurance, deserve a separate mention.” The insurance is the only thing on what it is possible to save, – the bankers are convinced. With the insurance company, most likely, it will be possible to agree without additional costs – there simply there will be a change of the beneficiary “. However, this law is not universal. It can happen that the new bank will demand policy registration in another insurance company, accredited in organization.

But also possible financial “surprises” don’t come to an end on it. “The bank without fail inspects the object of real estate transferred as a deposit, and can estimate it more low, than bank of the borrower”, – the bankers warn.

Therefore experts advise before to dare at refinancing carefully to count up possible benefit from it and to remember the universal law: if rates in both banks differ less than on 3 percentage points refinancing precisely isn’t meaningful.

The good exit for supporters of the point of view that a mortgage soon considerably will fall in price – to use a floating rate loan. After all in that case with reduction in price of resources for bank the rate under the credit will decrease – and necessity for refinancing will disappear. And it in turn will lead to that it is not necessary to pay additional expenditures at registration of the new credit.

By the way, experts consider that the first refinancing programs will start the banks offering a floating rate on a mortgage. “Those banks which offer today variable interest rate loans, I think, will soon offer also refinancing as it gives the chance to involve clients with good credit history. And not so it is a lot of channels of reception of new clients in this market”, – the experts are assured. – I would recommend to borrowers to take a mortgage loan on a floating rate without any hopes of refinancing, understanding that rates under credits for a mortgage can both decrease, and to go upwards if there will be a rise in price of cost of the involved resource “.

Do you still remember those good times when everybody could take a credit if one needed money? And just imagine the situation of those who must carry that burden nowadays when the economy is facing tough times. And for those people having loans the issue of credit monitoring is as urgent now as never before. It is not only about credit control, this also helps save money, time, and nerves and be fast in solving loan related problems. Those who are looking for a spot where to find out about credit monitoring, are welcomed to check out this credit report monitoring site – there is lots of information about credit monitoring and how to order that service.

In addition we shouldn’t forget about possibilities given to us by modern technologies. The Internet network gives a truly unique chance to learn what we need or to obtain anything at the best price on the market.

As a rule, for refinancing carrying out you should inquire written assent of bank in which you took the credit – after all from them you get in pledge your apartment. And to bypass this condition it is almost impossible. “To perform refinancing without the bank consent in which the credit is taken, it is impossible. It is registered in all credit contracts and the notary arranging a mortgage always pays to this attention”, – the bankers warn.

At this stage interested in refinancing persons can face the first problem on the way: not any bank will agree to do it. Such position of banks is not strange: they aren’t interested to give those clients who well repay the credit, after all the organization loses the incomes. According to the experts, many banks will agree on the individual program of re-structuring of a mortgage more likely, having changed conditions of your agreement: for example, having extended a credit period for additional 5-10 years that will reduce monthly payment under the credit (but will increase a general overpayment to bank).

Some banks have rung round the banks giving mortgage loans on purchasing of real estate on a secondary market of habitation in October-2010 and have asked, whether permits financial organization after several years of using the credit to refinance it in other bank? Any bank employee hasn’t refused. However, one organization to us fairly admitted that they can’t warrant it to be on 100 %. But in others in eager rivalry asserted that “it is possible, the mortgage agreement of it doesn’t prohibit”, “as all of you equally completely repay the credit at the expense of proceeds of credit of other bank it goes as complete “ahead of schedule”. And one representative of one bank in general has offered in case of falling of rates on a mortgage” to make an application in bank on rate lowering and if it already refuses then it is possible to be loaned up in other bank “.

Despite statements of bank advisers that refinancing is possible, don’t forget to study your credit agreement about, whether there is no in it a point prohibiting loaning up, and also what conditions of advanced repayment of the credit (for example, in October-2010 at 2 banks crediting purchasing of a mortgage, we have found out the commissions for advanced repayment).

Can you remember those good times when practically anybody could take a loan if one required cash? And just imagine the condition of those who must carry that burden nowadays when the economy is facing tough times. And for those people having credits the matter of credit monitoring is as urgent now as never before. It is not only about credit control, this also allows to save money, time, and nerves and be fast in solving loan related problems. Those who are looking for a place where to find out about credit report, are invited to check out this credit report monitoring site – there is lots of information about loan monitoring and how to order the service.

Also we haven’t forget about possibilities provided to us by digital technologies. The online network provides us with a really unique chance to learn what we need or to get anything on the best terms which are available on the market.

It is exclusively invitingly to take today a habitation purchase credit, and a year or two after it to change a creditor bank, and with it to change also transcendental rates under the credit for the smaller. Whether it is necessary to count on refinancing of a mortgage loan and for what surprises it is necessary to be prepared in such situation.

Two years ago, in October-2008 according to company research “Bank Consulting”, 12 banks from 50 of the largest under assets offered the program on refinancing of mortgage loans. Today in the market during an epoch of transcendental rates on a mortgage of offers on refinancing it was not possible to find it. But as rates on habitation purchase credits gradually go down, occurrence of such offers was only a matter of time. Nevertheless, there are important features of refinancing about which it is necessary to know already today – as that who already took a mortgage loan under the high rate can do refinancing later when rates will fall, and that who only is going to take an accommodation loan.

The standard scheme of loaning up looks, as a rule, as follows. “The client, who has taken a mortgage loan in one bank, addresses in other bank with a request for extradition of a new mortgage loan under the same pledge. The bank gives out to the client the new credit which is used for repayment old by transfer of all credit amount in the first bank. Pledge (apartment or the house) will be re-registered on” new “bank and continues to serve as credit security means, and the client starts to pay off on” new “to the credit on new, more to a low interest rate”, the head of one of the banks explains.

All seems at first sight simple, unique complexity is a transition of mortgage apartment-maintenance under the credit from one bank to another. “As a rule, issue of the new credit and repayment of the old occurs at a time, under in advance discussed scenario between banks, the borrower and the notary”, – the chief of department “Habitation on credit” marks.

Therefore it is no wonder that traditionally refinancing should occur with the consent of that bank in which you took the credit. “At the moment of registration of the transaction the notary who arranged the first mortgage should arrange the second, too. The dead pledge under the bank letter (the primary creditor) on removal of a prohibition from the pledge is transferred in a mortgage of the second turn. And after the new credit stands out and is repaid previous, pledge leaves from under provision under the closed credit agreement and becomes usual pledge under the credit which has been given out under the program of refinancing”, – the director of department of marketing of retail business tells.

Do you still remember those good times when everybody could take a loan if one needed funds? And just imagine the state of those who must bear that burden nowadays when the economy is facing tough times. And for those people having loans the matter of credit monitoring is as urgent now as never before. It is not only about loan control, this also allows to save money, time, and nerves and be quick in solving loan related issues. Those who are searching for a spot where to learn about credit report with score, are welcomed to go to this credit report monitoring site – there is lots of information about credit monitoring and how to order that service.

In addition we shouldn’t forget about possibilities given to us by modern technologies. The Internet network provides us with a really unique chance to learn what we need or to get anything on the best terms which are available on the market.

Problem 4: pledge is sold, but the credit isn’t closed

Private businessman Valley couldn’t keep the business in crisis. The sound three-room apartment in capital city for which he paid the credit has appeared to him too expensive. In bank have suggested to sell pledge and to close the credit.

Valley has signed the general power of attorney on sale to the bank employee and has left apartment. He has been assured that has settled payments with bank completely, after all the remainder under the credit was much less costs of its habitation. (Minus indebtedness) the bank employee should list a remainder of means on its current account. But money for the account to the businessman hasn’t arrived, and in three months the bank employees have called him and have reported that the remainder under the credit together with the added penalties constitutes about 20 thousand dollars.

The employee, with whom Valley has concluded the oral arrangement on credit closing, has left. Here it is possible to see at once two errors. The first – Valley has given out the general power of attorney without any additional clauses. Thereby he has refused right to supervise the sum and transaction terms. The second error – he hasn’t checked process of liquidation of the indebtedness before bank. It is necessary to do always even if the credit is extinguished without any problems. And in case of pledge realization it is especially important.

What to do: At conveyance of real property to bank for loan repayment, to the borrower it is necessary to insist on that bank employees documentary confirm the fact of closing of the credit. That is it is necessary to charge on hands the inquiry that the credit is extinguished also bank has no claims. If after sale of pledge the bank demands payment of penalties and penalties such actions are wrongful.

The resume: Delegating powers on sale of mortgage property to bank, the borrower should insist on written registration of all arrangements – the prices of sale, the terms, complete loan repayment, cancellation of penalties for the period of sale.

Do you still remember those good times when practically anybody could take a credit if one required cash? And just imagine the situation of those who must bear that load nowadays when the economy is facing tough times. And for those people having loans the question of credit monitoring is as urgent now as never before. It is not only about loan monitoring, this also helps save money, time, and nerves and be quick in solving loan related issues. Those who are searching for a place where to find out about credit reports, are welcomed to go to this credit report monitoring site – there is much information about credit monitoring and how to order that service.

In addition we shouldn’t forget about possibilities provided to us by modern technologies. The Web network gives a truly unique opportunity to learn what we require or to obtain anything at the best price on the market.

Problem 2: pledge isn’t on sale

In September, 2009 Volkswagen Golf 2006 of the release, belonging to borrower Tara, has been driven away on penal parking of bank. As she already for about half a year didn’t pay the credit, the exit was one – to sell the car on reasonable price and at the expense of it to liquidate a debt. Initially Tatyana agreed such variant; therefore she has brought car keys in bank. But there were months, the car all wasn’t on sale, the amount of debt grew. For a year the cost together with percent, penalties and parking payment has constituted about 10 thousand dollars. Now Tara also is glad independently to sell the car, but bank employees don’t give her to do it.

What to do: In order to avoid such situations in the order agreement it is necessary to fix the maximum term of realization of pledge (for example, 3 – 6 months). The managing partner of the law company reminds that for property realization many banks agree to suspend charge of penalty provisions and even percent. But that the bank has made it, the borrower should ask about it in writing form, that is write the application addressed to the chief of bank department where the credit is given out, and to achieve the consent. To create soft terms “by default” bankers aren’t able.

Problem 3: pledge is sold – money isn’t present
In 2006 Alexander has acquired Lexus IS 250 for 45 thousand dollars. In 2008 he couldn’t serve the credit and has been forced to transfer to bank the car for realization. At the moment of signing of the letter of attorney on sale of a car the remainder under the credit constituted 30 thousand dollars. In two months to Alexander have reported that on the car there was a buyer, ready to pay the sum, sufficient for loan repayment. Thus the manager has warned the borrower that for minimization of taxes in documents will specify other price – 10 thousand dollars. The borrower was not against it; the main thing is that the credit has closed. But after carrying out of the transaction on account of loan repayment it has been listed all 10 thousand dollars. Other sum Alexander still owes to bank. He, probably, has forgotten that swindlers among employees of banks meet as often, as well as among representatives of other dear professions. Sale on underestimated against the real price is basically dangerously, but especially – in case the third party interferes with process – the bank representative. In that case at the seller becomes much less chances to defend the interests

What to do: you can disagree on such adventures and to demand instructions in documents of the real sums. It is a guarantee of that the credit all the same will be extinguished for the greatest possible sum. If the bad story has already occurred, there is a chance to defend the rights in court, being based that the property has been sold at the price essentially below market without the consent of the borrower, the leading lawyer of law firm advises.

Do you still remember those good times when anybody could take a loan if one required funds? And just imagine the condition of those who must bear that load nowadays when the world economy is facing hard times. And for those people having credits the issue of credit monitoring is as crucial now as never before. It is not only about loan monitoring, this also allows to save money, time, and nerves and be fast in solving loan related issues. Those who are looking for a place where to learn about credit report with score, are welcomed to visit this credit report monitoring site – there is much information about loan monitoring and how to order the service.

Also we shouldn’t forget about possibilities given to us by digital technologies. The Internet network provides us with a really unique opportunity to learn what we require or to get anything on the best terms which are available on the market.

So how to avoid these dangers at pledge sale?

It has been found out how correctly to get rid of pledge (apartment or the machine) not to remain due to bank.

The main reasons of errors at realization of pledge:

- The borrower morally is suppressed and isn’t ready to object bank clerks;

- The borrower has given to bank complete control over a situation.

Bankers like to tell about how borrowers come to bank and throw keys from the car or apartment on a table to the credit manager. Certainly, in such stories they expose themselves as victims – say, the credit isn’t extinguished, and pledge in the conditions of crisis is illiquid. But actually in loss, as a rule, there is a borrower who loses property and frequently also remains to be the bank debtor.

Not to remain in a minus, it is necessary to consult with the lawyer and to take pledge sales process under control. To illustrate, how much it is important, we have collected real stories of the former borrowers that had to refuse from the taken in credit car or the apartment.

Problem 1: pledge sale at cut price

Natali has acquired two-room apartment in credit in 2005. In crisis she has lost work and couldn’t repay the credit further. Then she has made decision to sell apartment in the capital city and to move to parents in other town. Personally she could not sell apartment, she has delegated responsibility to the bank employee.

The debt remainder constituted 40 thousand dollars, and the sum from pledge sale should suffice on debt acquittal with interest (average cost of similar two-room apartment in the autumn of 2009 fluctuated from 60 – 75 thousand dollars). Everything that it will be possible to gain over a credit amount, bank employees have promised to list to Natali. Within a month the apartment has been sold, but any “superfluous” money as it was found out, doesn’t remain. Bank employees told to the borrower about “dead” real estate market, how it was difficult to find the buyer. In general, even having checked up all details, the borrower couldn’t prove that bank employees was a simple swindler. Yes they basically also aren’t interested in sale of mortgage property for a ceiling price. It doesn’t enter into their obligations. They have enough of that the credit will be extinguished. Though it at all doesn’t exclude availability near to such employees quite interested in the maximum revenue of realtor and collusion between the bank clerk and intermediary. Therefore to count on a profitable transaction through bank it is not necessary.

What to do: to Sell apartment it is better. If there is no such possibility it is necessary to arrange the order agreement correctly. If market price of mortgage apartment much more above, than the remainder sum under the credit, it is necessary to fix the minimum selling cost in the order agreement, which borrower signs at cession of property for realization by bank.

Can you remember those good times when practically anybody could take a loan if one required cash? And just imagine the situation of those who have to bear that load nowadays when the economy is facing tough times. And for those people having loans the issue of credit monitoring is as crucial now as never before. It is not only about loan monitoring, this also helps save money, time, and nerves and be quick in solving loan related problems. Those who are searching for a place where to find out about credit report, are invited to check out this credit report monitoring site – there is lots of information about loan monitoring and how to order that service.

Also we haven’t forget about possibilities provided to us by modern technologies. The Web network provides us with a really unique chance to find what we need or to get anything on the best terms which are available on the market.

According to expert’s estimations bankers have left collectors without work, so what does it supposed to mean?

Banks don’t hasten to transfer problem debts to the collector companies. From the beginning of year credit establishments have given portfolios for a total sum about 1.5 billion dollars, having retained defaulting debt at least several times more.

According to given bankers estimations in the most public collector companies to the data, for ten months of this year the volume of the accounts payable transferred to professional collectors, has constituted approximately 1.5 billion dollars.

About half of all affairs 20 % – with credit cards are connected with consumer loans. The rest is necessary on loans for an average and small-scale business and more specific products, including car crediting, a mortgage and other, – general director of one of the collector company speaks.

Conventional banks reluctantly leave collateral loans. But in informal conversations market makers notice that problems even with these loans become more aggravated now. Collectors carry consumer loans and credit cards to the most hopeless. “A lot of people people don’t want them to pay, even if they have money. The borrower should realize that payment to credit bank this month at it in the same priority, as payment of utilities or the Internet. But when speech comes about borrowers with delay more than 700 days, efficiency of return becomes very low though we let to people know that about them haven’t forgotten also the credit isn’t forgiven and won’t disappear itself”, – the director of one of the collector company declares.

Collectors are afraid that without intervention of the government return of problem credits will be tightened for some years. So the situation with problem credits is really bad now, however the bankers predict that this is only the post crisis effect and it will be solved in next few years so they think that they won’t have such problems with borrowers in the future. Borrowers have to understand for themselves that these credits won’t simply disappear and transfer in nothing, but it can really transform for them in much bigger problems as the debts will only grow ad also it can really badly spoil their credit history, and bankers don’t really understand why borrowers won’t realize and remember about this a very serious fact.

Can you remember those good times when practically anybody could take a credit if one required cash? And just imagine the condition of those who must bear that load nowadays when the economy is facing tough times. And for those people having loans the question of credit monitoring is as crucial now as never before. It is not only about credit monitoring, this also helps save money, time, and nerves and be fast in solving loan related problems. Those who are looking for a place where to learn about credit report with score, are invited to visit this credit report monitoring site – there is much information about credit monitoring and how to order the service.

In addition we shouldn’t forget about possibilities given to us by modern technologies. The online network provides us with a truly unique opportunity to find what we require or to obtain anything on the best terms which are available on the market.

The volume of the given out bank loans in 2011 will grow on 10-15 % as the experts predict.

According to the statistics given by exerts from National bank, the trust of the population to bank sector continues to rise, to what testifies the increase in deposits in the banks. Thus, crediting, according to experts will be accelerated more close to the middle of 2011 therefore the volume of the given out credits next year should increase by 10 %-15 %.

As it is marked, in October the total volume of deposits has increased by 1,8 % in comparison with September, thus for January-October deposits have increased by 22 %. From the beginning of year volumes of deposits of physical persons have grown on 24 % whereas volumes of deposits of juridical persons have increased by 20 %.

At the same time, the statistics under the given out credits remains weak enough. From January till October the total volume of the given out credits has increased all by 1,1 %, and credits to legal persons have grown on 6,4 %, and to physical persons – were reduced to 10 %.

As the experts have explained growth of deposits in bank system proceeds thanks to attractive rates, especially under deposits in native currency.

We expect that banks will continue to involve population deposits that it will be prepared for start of active crediting in 2011. In spite of the fact that interest rates under deposits will decrease owing to delay of inflation and strengthening of currency, the cash inflow to bank system won’t stop, as deposits still are considered as the basic investment tool in the country”, – the bank experts have added.

According to the experts, crediting will remain on a low level till the end of current year as banks perform more careful approach to this activity, therefore growth rates of given out credits will lag behind rates of their repayment.

We expect that crediting will be accelerated more close to the middle of 2011 therefore the volume of the given out credits next year should increase by 10 %-15 %. From all banks we recommend shares of o the more conservatives financial institutions which should show the greatest growth during a sector renewal period, and they are now trading with considerable discounts to analogs, – the analyst have added.

Do you still remember those good times when anybody could take a credit if one needed funds? And just imagine the condition of those who have to bear that load nowadays when the economy is facing tough times. And for those people having loans the matter of credit monitoring is as crucial now as never before. It is not only about credit monitoring, this also allows to save money, time, and nerves and be fast in solving loan related problems. Those who are searching for a spot where to find out about credit report, are invited to check out this credit report monitoring site – there is lots of information about credit monitoring and how to order that service.

In addition we haven’t forget about possibilities provided to us by modern technologies. The Internet network provides us with a really unique chance to discover what we require or to get anything at the best price on the market.