Seizure of properties in the case of non-payment has been ceased
First and foremost, seizure of properties in the case of non-payment has been stopped if you have difficulty paying the mortgage on your first home. This is one of the new features of the 2020 tax legislation. In fact, starting this year, when the conditions that normally lead to the auction of the property are met, it is possible to renegotiate the mortgage if the property in question is the main house where you regularly reside. This procedure can be initiated for active seizures between 1st January, 2010 and 30th June 2019.
There are some requirements that must be met to prevent the seizure or repossession of the property. Here they are:
- The house must have been purchased with a mortgage;
- the house must be the residence of the debtor;
- the house must be the main residence; the protection does not apply to second homes;
- the creditor must be a bank
- at least 10% of the loan must have been repaid to the creditor.
So, how exactly do you go about requesting renegotiation of the mortgage in case of seizure risk? By 31st December 2021 applications may be submitted for amounts not exceeding 250,000 euros and for amounts that aren't less than the residual debt plus interest.
If the application is rejected, the debtor will be able to appeal to relatives up to the third degree for help, for whom the same requirements would apply: if the relative's application is accepted, he or she would become the owner of the property, giving the debtor the right to live there for five years. At the end of this period, the possession would return to the original debtor, only in the case that he or she is able to return the money that has been lent.