The bank comes to seize the house to deduct the debt, is it okay if I don’t hand it over?

When a person borrows money, the bank will require collateral to ensure payment of principal and interest. Common mortgage assets are houses and land belonging to the borrower’s ownership and use rights.

When the borrower cannot repay principal and interest on time, the bank will conduct activities recover the property you are mortgaging. People’s big question in this issue is whether the bank can collect the house or keep the land for sale to recover debt without the consent of the mortgagor?

Lawyer Quach Thanh Luc, Director of the Law Firm, Hanoi Bar Association, gave the following answer.

Accordingly, before conducting asset seizure activities, banks will Issue: i) Notices of asset seizure, notices of security asset handover. In these documents, the bank will have information about the terms in the Mortgage Contract, the Credit Contract shows the content: The Bank has the right to seize the property, the Mortgagor voluntarily discusses delivery, no obstructive behavior, no complaints or disputes.

ii) Notice to local authorities The locality where the real estate is located requests to coordinate and support the police, security forces and other necessary forces to ensure security and order to participate in witnessing and ensuring property seizure activities according to Clause 5, Article 7. Resolution No. 42/2017/QH14.

With the above steps, the bank or a unit authorized by the bank will go to the place where the real estate is located to conduct house and land seizure activities.

In the face of the above moves by the bank, the coordination of the local government, and the assurance of security and order by the police force, people will often have the wrong opinion that they must hand over and cannot resist.

Banks cannot arbitrarily seize real estate without the consent of the mortgagor

It is true thatyou borrow and you pay em> but if the borrower is too desperate, the mortgagor has no other place to live and is forced to choose to keep the house, keep the land for a while to have shelter from the rain and sun, the borrower needs time to manage and arrange to repay the debt… you still have the right not to hand over the house or land to the bank.

Refusing to hand over the house to the bank to settle debt is not a “Chi Pheo</em” activity. >” on the contrary, this has a very specific codified legal basis:

i) Article 301 of the 2015 Civil Code on Handing over secured assets to handle regulations : “The person holding the secured property has the obligation to hand over the secured property to the secured party for disposal in one of the cases specified in Article 299 of this Code. In case the person holding the property does not hand over the property, the secured party has the right to request the Court to resolve it unless the relevant law provides otherwise“.

It is understood that if you do not hand over the property, the bank must sue you in court and must go through the enforcement agency to confiscate the mortgaged property. Currently, it is not possible Are there any other relevant legal provisions that give banks the right to unilaterally confiscate or forcibly recover assets from people whose assets do not voluntarily hand over.

The lawyer said that the law still has regulations to protect mortgagees when they cannot pay their debts (Illustration).

ii) Clause 5, Article 7 of Resolution No. 42/2017/QH14 only stipulates: “Local authorities at all levels and police agencies where security assets are seized within the scope of their functions, duties and powers Ensuring social order and security during the process of confiscating collateral at the request of credit institutions, foreign bank branches, and organizations buying and selling bad debts. In case the securing party does not cooperate or is not present according to the notice of the credit institution, foreign bank branch, bad debt trading and settlement organization, the representative of the commune-level People’s Committee where the collateral is seized shall participate in the securities. Witness and sign the record of confiscation of secured assets“.

“This means that the Police agency ensures security and order. The People’s Committee at the commune/ward level participates in witnessing and signing. Minutes of confiscation of secured assets, but these agencies do not intervene or assist in forcing the mortgagor to hand over the assets. If you do not voluntarily hand over the property, the bank and the authorities cannot force you to do so. There are no administrative measures to force you out of the house if you do not agree to hand over,” lawyer Luc analyzed.

Thus, the law still has provisions to protect mortgagees when they cannot repay their debts. The bank cannot arbitrarily seize the property without the consent of the mortgagee Administration only supports ensuring security and order, not coercing people when they do not agree to hand over real estate.

According to lawyer Luc, the dispute is not handing over mortgaged real estate to ensure payment of principal and interest. can only be resolved at the agency conducting the proceedings, which is guaranteed to be enforced by a competent judgment enforcement agency.