Unpaid mortgage, the solution arrives for those who cannot make it with the installments: this is how it works


Unpaid mortgage, the solution arrives for those who cannot make it with the installments: this is how it works
Written by aquitodovale

For who You do not have money for pay the mortgage a solution is coming: it is a new fundcalled Fiawhich will allow families to replace the mortgage paymentor even a unsustainable lease feewith a leaseso with a rent, more sustainable.

Nothing official yet, but the solution for those who can’t make it with the mortgage payments could soon be. For the moment, in fact, there is only the law proposal – elaborated by the banking commission with the support of four Italian institutions, such as Cdp, doValue, Gruber, Gardantwho in turn made use of the advice of Raffaele Lener, professor of commercial law at Tor Vergata – who in the coming days will be presented in Parliament.

A far-reaching measure for all those families who are paying for the consequences of the pandemic and the war in Ukraine and who find themselves in a moment of economic difficulty that could make it difficult to balance of the mortgage payments. Difficulties that also concern many companies, which are unable to repay the debt contracted on the instrumental property despite having a positive gross operating margin.

How not to pay the mortgage thanks to the FIA ​​fund

As anticipated, if the bill is successful for families and companies there will be the possibility of replace a mortgage payment or an unsustainable lease fee with a sustainable lease. In this way you will have more time available to ensure that the family or company budget can return to balance.

A fund that according to rumors could be promoted by Gardant – born from the spin off of Fonspa and Banca Ifis – but also Amco, the Treasury’s bad bank, is named.

It would therefore be an asset management company – public or private – which would establish what is a real estate fund, which will be reserved for institutional investors and whose shares will be traded on a regulated market “Reserved“.

In turn, the creditor, in this case the bank or in any case the financial company with which the leasing contract was stipulated, can propose a property or a basket of assets to the aforementioned fund that would be placed as collateral for impaired loans. It is important to underline that the operation can only be activated by the bank holding the credit and not by the one who is unable to pay the loan.

In turn, the Fund (AIF) will propose to the creditor bank with which negotiations have been started the purchase of the property, or properties as the case may be, placed to protect the impaired credit with a sale price already definedwhich at the same time also indicates the price of repurchase by the debtor and the amount of rent that this will have to pay. In any case, the last word belongs to the creditor bank, as it is this – once having evaluated the aforementioned proposal – that decides whether to carry out the operation.

What are the consequences of such an operation?

What has just been said could be complicated to understand for those who are not experts in the field. But what interests us is to analyze the actual consequences for those who, in difficulty with the payment of the mortgage installments, will contact the bank to request access to the aforementioned instrument.

In detail, once the aforementioned operation is completed with the positive opinion from the credit institution, it will happen that:

  • the creditor bank initiates discussions with the debtor so that the latter can consent to the purchase of the property by the Fund in question at the value agreed in the transaction;
  • in the event of the go-ahead, the purchase of the property will be carried out through a judicial mediation procedure or public deed, an operation in which the creditor bank will also participate and which will be concluded before the notary;
  • once the deed of sale of the property has been completed, the Fund transfers the receipts to the creditor bank, or to the finance company as the case may be, which in turn extinguishes the debt and cancels the mortgage on the property.

But what will become of the debtor? This, if you want it, will obtain the rental of the property object of the operation, such as the dwelling house, for the duration of 10 yearswith an annual rent that cannot exceed 5% of the purchase price of the same. For example, for a house purchased for 200 thousand euros, the annual rent must be a maximum of 10 thousand euros. And at the same time he gets abuyback option to be exercised during or at the end of the 10 years, at a predetermined value.

Should this option not be exercised, or in any case in the event that there are delays in the payment of the lease, the Fund will contact the market to sell the property or in any case to re-let it.

Here is a example to recap it all.

Tizio is no longer able to support the installments for the mortgage stipulated for the house. He turns to the Alpha bank which in turn opens a negotiation with the FIA ​​Fund by agreeing on a purchase value of the property, a price for the rent it’s a’buyback option. At this point Tizio sells the house to the Fund, which passes the money to Alpha as a balance of the debt.

Tizio can still decide to live for 10 years in the same house by paying a rent agreed to Alpha, and at the end of the 10 years, or even earlier, he could decide to buy it back.

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