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.
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