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Difficulties with Early Repayment Scheme

To end mortgage issue through advantage of Early Repayment Scheme, agreement for sale is not enough. Banks require cash and confirmation of cash payment until 30 January. How to sell with mortgate?

16 January 2012

Difficulties with Early Repayment in HungaryOpenhouse Real Estate Franchise Agency sees a black spot in a legalframe of Early Repayment Scheme. A it is told banks do not accept agreement for sale as deposit that justifies financial resource, so those who want to finance Early Repayment Scheme from selling their properties in Hungary, they are disadvantaged.

Claim resolution

Openhouse has requested an official resolution in this particular matter from Chairman of Hungarian Financial Supervisory Authority(HFSA) on behalf of interested sellers. The request is based on the original law that describes home owners, who want to pay mortgage back upfront in terms of Early Repayment Scheme, and acceptable resources as cash, loans, and contract of sale. Debtors ,who wants to finance mortgage in terms of Early Repayment Scheme, are requested by banks to arrange upfront payment at discounted rates within 60 days from date of claim for Early Repayment registered.

Modified law

End of last year - just a few weeks ago- however, law of Early Repayment Scheme was modified, which significantly complicates the job of those who want to sale their apartments, and pay their debts back accordingly. After claim for Early Repayment registered, homeowner has to confirm until 30 January that he or she is able to pay the mortgage back (with cash or HUF loan) at discounted rate.

Thanks to narrow deadline, resolution is expected to be available very soon.

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