Sber rolls out mortgages on auctioned real property

Jan 13, 2022

Sber has marketed retail mortgages on pledged real property sold amid debtors’ bankruptcy. The terms apply to properties owned by the borrower, held by the bank as collateral and sold at auctions. As of now, such mortgages are available when buying residential real estate (apartments and homes with land plots) and non-residential properties (non-residential apartments). Down payments start at 20%, with deals powered by letters of credit.

To take out a mortgage, buyers will need to choose the property on one of the venues – DomClick, Portal DA, Avito – sign up as a bidder and win the auction. This will be followed by the standard procedure of signing the mortgage agreement, the sales agreement, opening a letter of credit, and registering the deed with Rosreestr. Portal DA clients can also take advantage of an authorized agent taking on the entire purchase process, from submitting a bid to participating in an auction.

Maxim Degtyaryov, vice president, head of the Distressed Assets Department, Sberbank:

“Collateralized residential real estate is often a chance to buy property at a below-market price. Furthermore, such deals are simpler and more secure as bank employees are the ones in charge of doing the paperwork for loan agreements, and the chance of a deal being challenged is virtually zero. Collateral mortgages were successfully piloted in 2021, now being available in 49 regions of Russia, and we have signed several deals already.”