Military mortgage: conditions upon dismissal and the fate of savings

From the article you will learn:

A military mortgage upon separation from military service often becomes a serious financial test for the resigning person. The preferential lending mechanism has been operating in the Russian Federation since 2005 and was designed specifically to assist military personnel in purchasing their own housing. Usually, while a military man is serving, there are no problems with mortgages, since the state pays for everything. But what about the unpaid debt if the borrower decides to change his occupation or is forced to leave due to health, illness or at the end of the contract? You will find the answer to these and other similar questions in our article.

What is a military mortgage?

Military mortgage

(hereinafter abbreviated as VI) is a special program through which Russian military personnel can purchase housing on preferential terms. The acquisition of own square meters is carried out within the framework of the NIS - the savings and mortgage housing system in the Russian Federation.

The program works according to the following mechanism:

1. First, a person must become a member of the NIS. Some military personnel become participants automatically, while others must write a corresponding report to participate.
2. After a person has received the status of an NIS participant, a personal registered savings account is opened for him. A certain amount of money is credited to this account every year.
3. After 3 years of participation in the NIS, a person has the right to draw up a report with a request for the issuance of a certificate confirming the right to a targeted housing loan - TSL.
4. Next, the serviceman receives a certificate and selects a home that he would like to purchase on preferential terms.
5. The next step is contacting the bank. The applicant must collect the required package of documents and submit an application for a loan. If the loan is approved, a tripartite CZL agreement is concluded between the serviceman, the bank and the Rosvoenipoteka Federal State Institution.
6. The bank opens an account for the client to which money is transferred from a personal registered savings account. These funds are credited as a down payment.
7. After this, the employee only has to sign a loan agreement with the bank and conclude a deal to purchase real estate.
8. At the final stage, the military officer registers ownership of the property in Rosreestr.

Note! Until full payment is made, the property is under two encumbrances - in favor of the bank and in favor of the state.

Repayment is carried out through regular payments from the state budget. However, this only lasts as long as the borrower serves. By the way, the latter can additionally use personal funds and even maternal family capital for the purchase. You can get a tax deduction for the amount you paid out of your own pocket.

Is it possible to restore the right to payments through the court?

All payments under the NIS program are regulated by the state. Appeals to court are becoming increasingly rare.

However, sometimes controversial situations arise related to:

• division of property purchased under the military mortgage program during a divorce;
• exclusion from the register due to dismissal;
• refusal to provide subsidies for early departure from law enforcement agencies.

You will have to collect a lot of evidence and documents to support the plaintiff’s arguments. Using the services of human rights defenders helps to save the apartment in the event of controversial situations.

Military mortgage term

The term of the transaction directly depends on the age of the borrower or on how long the latter has left to serve before retirement. The maximum age for service for men who have military ranks starts at 50 years, for women – 45 years.

While the military man is serving, the state pays monthly payments for him. But sometimes VI participants quit before the debt is fully repaid. In such a situation, the fate of the unpaid loan, as well as the fate of the purchased housing, will depend on a number of factors, in particular, on:

• grounds for dismissal;
• the length of service of the person being dismissed;
• possibility of independent debt repayment.

Features of receiving payments after 45 years

The specified age threshold is of great importance in some situations. Let's sort them out.

1. If the period of service in the army at the time of reaching the age limit is less than 10 years, then the military man does not have the right to use the accumulated funds.
2. If the mortgage from the bank is designed for up to 45 years, and the military man retires at the age of 40 after expiration of 20 calendar years of service, then in this case the NIS money does not need to be returned; the balance of the loan from the bank will have to be repaid from one’s own funds according to the payment schedule.
3. If you have not taken out a military mortgage before the age of 45, then after this age real estate can only be purchased using accumulated funds, since banks do not lend after this age.

Each case is unique and requires careful consideration of the issue, so it is better to use the services of a competent lawyer with experience in such cases.

Grounds for dismissal of a military personnel

A serviceman may terminate his service on one of the grounds listed in Art. 51 No. 53-FZ. According to the standard rule, if a person resigns, he must:

• first , return the amount of the TsZZ (what has already been received from the state) to the state budget;
• the second is to pay off the balance of the debt to the bank.

All these payments are made from the personal savings of the dismissed person.

Important! If a person does not fulfill his obligations, the bank and Rosvoenipoteka can go to court and forcibly recover the funds due to them. As a rule, in such situations, the claims of creditors are satisfied at the expense of the mortgaged property.

However, the standard rule has a number of exceptions that are related to the reason for termination of military service. In particular, the legislator establishes so-called preferential grounds for dismissal when a person leaves due to circumstances beyond his control. An example is dismissal for health reasons (recognition of a serviceman as unfit for military service or recognition of a soldier or sailor as limitedly fit), due to general training (in connection with organizational and staffing measures to change the structure of the facility), age or family circumstances.

In addition to preferential ones, there are also neutral (positive) and negative (discreditable) grounds for dismissal. The latter is often called dismissal under an article.

Table No. 1. Grounds for dismissal from military service under article.

Table of interest rates and down payments

Note : 3 banks from the table allow you to pay extra from your own pocket and take out a larger mortgage - Absolut Bank, URALSIB and Zenit Bank.

Length of service

In addition to the grounds for dismissal, it is also necessary to pay attention to the length of service of the person leaving. If a serviceman has 20 years of military experience behind him, the issue with VI will be resolved according to special rules, which presuppose that the person has special preferences.

Persons after 10 years of service can also count on certain concessions, but only if leaving service is carried out on a preferential basis. Those who do not have 10 years of service will find themselves in the most unfavorable conditions upon dismissal.

In what cases are savings not paid?

If the serviceman’s dismissal occurred before the expiration of 20 years, and the reasons do not relate to the preferential list, then the serviceman loses the right to use the savings. Here events can develop according to the following schemes:

• if an officer does not take advantage of a military mortgage, his individual account is simply closed, and the savings on it are returned to the state budget;
• if a military man purchased real estate using the savings system, then he will have to return the amount paid by Rosvoenipoteka and repay the mortgage debt to the bank using his personal funds.

Reasons for removal from service

The state also reimburses 60% of utility costs, including telephony and radio. Technically, reimbursement occurs after submitting payment receipts for every six months to the social support department by transferring funds to the recipient’s personal card.

Benefits for those dismissed for health reasons

In case of early termination of a contract on one’s own initiative, concluded before 04/02/2014, in the absence of a total of 25 years of experience and age less than 45 years, one-time cash benefits are not accrued.

— length of service from 10 to 20: * 10 or 15 (if more than 15 years) salary, lump sum upon dismissal; * VPD to the chosen place of residence for military personnel and family members; * ERP per container (20 - ton); * EDV for time served in the year of dismissal (if worthy); * residential premises in the property (if the military owner is recognized as needy); * priority right to receive land for individual construction; * 60 salaries (if military personnel are declared unfit); * the right to professional retraining free of charge; * the right to non-competitive admission to state educational institutions of primary vocational education and to training courses in relevant professions; * if the length of service is from 15 to 20, then the monthly social benefit is 40% of the salary, paid for 5 years; * if less than 15 calendars, then - salary according to military rank for a year;

* VPD to the chosen place of residence for military personnel and family members; * ERP per container (20 - ton); * EDV for time served in the year of dismissal (if worthy); * priority right to receive land for individual construction; * the right to professional retraining free of charge (if the length of service is more than 5 years); * the right to non-competitive admission to state educational institutions of primary vocational education and to training courses in relevant professions; * salary according to military rank during the year;

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— length of service less than 10: * 5 salaries, lump sum upon dismissal; * VPD to the chosen place of residence for military personnel and family members; * ERP per container (20 - ton); * EDV for time served in the year of dismissal (if worthy); * 60 salaries (if military personnel are declared unfit); * the right to professional retraining free of charge (if the length of service is more than 5 years); * the right to non-competitive admission to state educational institutions of primary vocational education and to training courses in relevant professions; * salary according to military rank during the year;

But it happens that benefits for young people who have served in the army are not provided. This can happen if a soldier was subject to disciplinary action or criminal liability during his service. These incidents are noted on the military ID.

Making a report

Before terminating the contract, a report is required. It is sent to the authorities. Algorithm for reviewing a report:

1. The document is sent to the certification commission.
2. The commission accepts the employee and considers the reasons for termination of the contract.
3. If the reasons are found to be justified, the relationship is terminated.
4. A protocol of the commission's decision is drawn up. A copy of it is sent to the employee.
5. The order to terminate the relationship is approved by the commander.

FOR YOUR INFORMATION! If a person is denied dismissal, he can file a corresponding complaint.

Let's look at the contents of the report:

• Request to terminate the agreement.
• Full name of the applicant, his military rank and position.
• Grounds for dismissal. They must be confirmed by the provisions of regulations and attached papers.
• Information about the applicant's commissariat.
• Service start date.
• Length of service.
• Availability of public housing.
• Request for provision of food.

Documents must be attached to the report. For example, this could be a health certificate.