In compliance with the original plans, the National Asset Management Ltd. helped settle the housing problem of a total of 15 thousand families, i.e. 60-70 thousand individuals, until the end of last year, Minister of National Development Zsuzsa Németh announced at a press conference evaluating the performance of the company so far, held in Budapest on 3 January, 2014.
The number of families relieved of their mortgage loan obligation by the end of 2013 met original plans, Zsuzsa Németh announced. The essence of the facility, unexampled before, is that the National Asset Management (NET) Ltd. buys the mortgaged property of mortgage loan debtors to the benefit of the state and the residents, thus relieved of their debt, may stay in the property as tenants.
Download
Within the framework of this unique compromise solution, the lender must give up the part of their claim above the discount price and the debtor their ownership right, Zsuzsa Németh explained. At the same time, the housing of the vulnerable families is ensured at the moment of their offer already because this is when the credit institution suspends the enforcement procedure.
NET Ltd. was established within the framework of the Government’s Home Protection Action Plan launched in May 2011. The mission assigned to the company was to provide a long-term solution for the housing of families seriously indebted as a consequence of mortgage loan repayment. In the case of properties included in the NET programme, every HUF 1 of state budget money paid by the company financed outstanding claims of HUF 2.14. Thus, debtors accepted into the NET Programme have so far been relieved of the payment of almost HUF 35 billion of outstanding mortgage claims payable to credit institutions, for which state budget funds of HUF 16 billion have been used. The net rent families must pay is an average amount of HUF 9,400 per month, whereby their monthly burden has been reduced to just a fraction of the loan repayment instalments of typically several tens of thousand forints.
The vast majority of the properties offered for the programme are in Pest, Borsod-Abaúj-Zemplén and Szabolcs-Szatmár-Bereg Counties, CEO of NET Ltd. Tamás Csillag said. The general market value of the properties was HUF 7.8 m when the mortgage loan agreement was signed and the average purchase price calculated from the former and payable by NET Ltd. was ca. HUF 3.3 million, he added.
Based on the experience of the programme, the Government gradually widened the range of debtors eligible for participation, Zsuzsa Németh explained. It was partly thanks to the flexible adjustment of conditions that NET Ltd. was able to meet the target figures set for last year, helping out 15 thousand vulnerable families. Considering banking processes, the Minister of National Development expects that a similar rate of 1,500-2,000 cases per month is to be submitted to the company this year as well. The asset management company is thus expected to meet the target number specified in the government decree, approving a total of 25 thousand properties offered and thereby ensuring the housing of 100-120 thousand individuals by the end of 2014.
(Ministry of National Development Communications Department, National Asset Management Ltd.)
