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Home-Saving Fund: Can Relatives Intervene in the Event of a Default?

Home-Saving Fund: Can Relatives Intervene in the Event of a Default? - A rule that protects the first house from the actions of the banks. Today, relatives and relatives can also help save the debtor.

Home-Saving Fund Can Relatives Intervene in the Event of a Default

Law 157/2019, which converted the tax decree 120/2019, came into force on Christmas Day last year. One of the most important measures contained in this text is undoubtedly the possibility, under special conditions, of allowing defaulters to renegotiate their mortgage or to apply for an additional loan, surrogate it within the existing mortgage guarantee, to a third-party institution, to avoid forced execution from the main residence. All this is realized thanks to the existence of the first home guarantee fund which, as the name itself says, is a guarantee for the remaining part of the debt. The MEF set up this fund, which specifies that the coverage is for a maximum of 50% of the capital. In addition, the rule legislates the possibility for relatives to be able to intervene in support of debtors.
Let's look at the legislation in detail:
  • How the Save Home Fund works
  • How the intervention of relatives and related people works
  • How to demoted property acquired by relatives and relatives
  • How to apply

How the Save Home Fund Works

The house rescue fund, approved in the 2020 budget law, was strongly wanted by the representative of the Five Star Movement Daniele Pesco, now Chairman of the Budget Committee. The main objective of this measure is to meet insolvent borrowers who, in serious economic difficulties, are in a real way at risk of losing their homes. In order to benefit from this benefit, the law imposes a number of conditions that must exist at the same time. First of all, the debtor must be qualified as an ordinary consumer, unlike the creditor who must be a banker. The loan in question must come from a mortgage with a substantial first-degree mortgage guarantee, provided only for the purchase of a property with the function of main residence, otherwise called the first home. In order to access this fund, the borrower must have already repaid at least 10% of the capital. In fact, under this threshold the right of ownership remains considered to be lacking since the existing contract has existed for too little time. The property subject to the mortgage must take a real estate execution and a foreclosure that must have been notified in the time period from January 1, 2010 to June 30, 2019. There must be no other debt on the house, that is, no other creditors should not be present other than the bank that pays the mortgage. If there are other creditors, they must formally waive the credit before filing the application. the last essential condition is that the share to be renegotiated or refinanced must not exceed 250,000 euros.

How the Intervention of Relatives and Related People Works

This new law really aims to do everything possible to ensure that the insolvent borrower can renegotiate or refinance his debt, thus avoiding having his house taken away. Precisely for this reason, the rule also allows relatives and relatives, up to the third degree, to intervene on behalf of the debtor. Serious economic conditions could in fact hinder, or simply put the borrower in great difficulty, by not allowing him to bear the costs of the procedure. The law specifies that, in situations where the debtor fails to obtain the renegotiation of the credit, much less the refinancing, the mortgage can be paid to a relative or related, able to provide stronger guarantees. However, the above conditions for applying such a tool remain blank. When the mortgage is granted to a relative or a relative, a court must issue a Decree of Transfer ownership of the property in favor of the new debtor. As a safeguard, however, the original debtor is granted the opportunity to continue to fully enjoy the house for the five years following the transfer date. The granting of this right of residence is legally transcribed on the sidelines of the mortgage, thus making official the real right of enjoyment. In addition, it has been stated that the right of the original debtor to occupy the property may fall if he does not retain residence within the property itself in the five years prescribed.

How to Demoted Property Acquired by Relatives and Relatives

The 5 years is a very important term because they also correspond to the date by which the original debtor can request the demotion of the property. Of course, prior to that request, you must repay the full relative or related, who has accepted his debt, of the amounts paid by him to the lender that issued the loan. as long as there is the consent of the lender, the debtor can then take back the remaining mortgage and free the relative, or the affine, up to the third degree, from any bond. In order to further facilitate people who, due to unfavorable economic situations, have to use this instrument, the rule imposes a fixed measure of 200 euros as a consideration due for the act of transfer to the court of the property and the eventual transfer to the debtor of the same property.

How to Apply

The debtor must file an application no later than the peremptory deadline of 31 December 2021. The loan deferral may not be more than 30 years from the date of the signing of the new agreement. The duration of the loan added to the debtor's age must not exceed 80. please note that the Save House Fund will guarantee only 50% of the capital covered by the renegotiation, but not the share of the interest that will remain entirely borne by the debtor. The relative or the related can then intervene as a last resort help to meet the general conditions of the institution.

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