Bank raises rates? Begin hostilities ...

27.09.2010 07:17
Articles about real estate | Bank raises rates? Begin hostilities ... Usually, increasing the unilateral bid, the Bank is guided by one of the items the mortgage agreement.
Almost all contracts include mortgage lending force majeure, in which a creditor has the right to raise (even for the already elapsed time)!
Absolutely not exclude the situation where the bank-lender informs the borrower about raising rates (say 1-2%), and a recalculation is paid at the moment of interest in accordance with the new economic circumstances.
Is it lawful actions taken by the bank?

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To understand this, let us recall the standard mortgage contract.
One of the paragraphs of the document reads roughly as follows: the creditor has the right to change the terms of the agreement, which shall enter into force after the decision. And what? In legal terms, simply do not find fault with what. After all, we ourselves, in his own hand put the signature under the document, thereby perpetuating their powerlessness in the matter!
There is, however, a small nuance.
Under the law, a contract of credit on a mandatory basis should be spelled out the amount of the loan, all of the terms of repayment, the purpose of loan, interest rate and, of course, conditions change in the contract or its termination.
It turns out that the interest rate stipulated in the document is nothing more than, as the most important condition of the contract (along with the maturity and the loan amount), and therefore the bank's unilateral right to change the interest rate on many points, how much it is profitable, is no more than the arbitrariness!
If we are really adhere to the letter of the law, any change in the contract should be consistent with the other party to sign it. Unfortunately, as practice shows, the bank will approve the changes, and the borrower has no choice as to accept new terms.
Moreover, in this case, silence from the client and the bank is regarded as the "consent".
Naturally, the small increase in interest rates on well-founded reasons, based on serious and fundamental studies of the market, the borrower gives little chance to contest this matter in court. Nevertheless, there may be instances of this tyranny, when the bank to raise interest rates immediately by 5-10%. In this situation, the customer not only can but must go to court! If our interests will be protected educated and experienced professionals, the chance to win the case and accept the contract clause, the possibility of a unilateral change in terms of the contract null and void increases to 100%!
Content tags: Mortgages
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