Home foreclosure protection plan gets green light from European Commission

The European Commission has approved a plan for the protection from foreclosure of the primary residence of those who have delinquent mortgage loans.

According to the announcement of the Commission the annual budget for the implementation of the plan is 132mn euros.

There will be strict criteria for admission to the programme as regards the value of the primary residence and the income of the debtor so as to include only those who are truly in need.

Those included in the programme will receive a subsidy worth between 20 percent and 50 percent (depending on their income) of the monthly repayment instalment.

Conditions include that the loan must be secured by the primary residence and that the borrower must continue to pay his or her share of the monthly instalment.

If the borrower stops servicing the loan the bank can commence foreclosure procedures.

All banks will have to restructure the loans of those admitted to the programme in accordance with the rquirements set by the state.