Borrowers suffering from unscrupulous contractors in individual housing construction may apply for debt restructuring
The Bank of Russia recommends that credit institutions support people facing violations in individual housing construction.
Namely, these are cases when a household raised a mortgage loan for such a construction project and the bank transferred the money to the contractor, but the latter failed to finish or even start the construction.
Lenders should evaluate each case in particular, take into consideration the economic situation of the borrower, his/her social status, and the availability or absence of other housing. Based on this information, banks may decide to restructure the debt, including not to increase the interest rate because the house has not been built, to defer the repayment date, not to apply fines and, in challenging situations, even to write off the debt fully or partially.