request information from the bank about the debt repayment process, the presence of overdue payments and penalties;
refinance the remaining debt. This is beneficial if the interest rate on loans has decreased during the term of the loan agreement;
apply for a tax deduction. A mandatory condition is the presence of a share in the mortgaged property. When submitting an application, you will need to confirm the expenses for repaying the loan and paying the property tax.
When it comes to a mortgage, co-borrowers can receive a share in the apartment or house being purchased. However, everything depends on the status of the property, the presence of a marriage contract (if the spouse acts as a co-borrower) and other documents that determine the boundaries of rights.
The obligations of the parties to the transaction, as already mentioned armenia mobile database above, are timely debt servicing. If the title borrower, due to certain circumstances, cannot make monthly payments, then the remaining debt must be paid off by the co-borrower. The loan agreement may also provide for other options, such as making monthly payments in equal shares, etc.
What risks does a co-borrower bear?
Based on Articles 325 and 365 of the Civil Code of the Russian Federation, risks directly depend on the solvency and discipline of the title borrower:
The remaining balance of the debt will have to be paid if the borrower fails to meet their financial obligations.
Since information about loans for which a person acts as a co-borrower is reflected in the credit history, problems with obtaining a new loan may arise. When reviewing an application, banks always analyze the debt burden.
If the borrower stops making monthly payments, and the financial situation of the co-borrower does not allow for the remaining debt to be repaid in full and on time, negative entries will appear in the credit history (which also reduces the likelihood of receiving a new loan even after several years).
To avoid unnecessary problems, before agreeing to become a co-borrower, it is important to soberly weigh the pros and cons, as well as assess the potential risks.