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Attention Landlords with UniCredit Mortgages …..

[Photo credit: www.gotcredit.com]

As you may know due to the legislative changes in Hungary over the last few years, the financial institutions have had to recalculate the interests and charges that they applied for their CHF and EUR loan agreements. While converting these mortgages to HUF for the remainder of the outstanding loan period. If you have a mortgage with UniCredit you will be receiving a letter regarding the above changes in the next few weeks.  

The letters will be posted by the Bank following the 30th of September, please note that the letters will be posted to the address that was supplied at the time of the agreement (unless the Bank was notified about a change of address). The letter will probably be in Hungarian and will contain several tables and calculations; the purpose of this is to inform you about the results of the recalculation which will either be 0 HUF or a positive balance. If there was no late payment (arrears) from your side then the Bank will consider the positive balance as an advance payment against the future installments of the mortgage. If the agreement has already been terminated/completed and the Bank has no claim towards you then the positive balance will be transferred back to you. If there is a late payment or other claims towards you (arrears) then the positive balance will decrease these claims. Please note that a significant decrease or positive balance should not be expected as a result of the recalculation.

 

After the receipt of the recalculation you have 30 days to file a complaint/claim related to the content of the letter to which the Bank will reply within 60 days. For example a letter received on October 15 by you will need to be answered – by registered post - on or by November 15 if the Bank will deal with the response/counter claim. From this point the Bank has until January 15 to reply to you. If no agreement it reached after this point you can escalate the complaint / claim to the Hungarian Financial Supervisory Authority.
 
Following the delivery of the recalculation letters the Bank will be open to negotiate settlements again in relation to the agreements that are far behind with the payment obligations (arrears) or have already been terminated due to non-payment (foreclosure). Settlement is possible even if the liquidation procedure has been initiated by the Bank; note that additional fees will apply due to the Liquidator though.

 

As for the best options there are two possible solutions:

 

1) You as the Owner / Debtor start marketing the apartment for sale in order to find a suitable buyer.

2) Alternatively if you find a third person, a friend, family member or a company (your own company works as well) to buy the apartment. In the latter case you do not actually need to pass the possession of the property only the owner’s name changes.

 

In either of the above cases the possible buyer will have to submit a signed Letter of Intent to the Bank in relation to the purchase of the property. You also have to submit a declaration that you accept that the full purchase price will be transferred to the Bank in exchange for the Bank assigning the remainder of the debt to the buyer of the property and deletes the mortgage from the title deed. In the Sale and Purchase Agreement, which will not be submitted to the Bank, the parties can agree that the debt acquired by the buyer shall be waived in exchange for the ownership of the property.

 

Based on our previous experiences, by applying the above method it is possible to reach an exit at 51% of the existing total debt.
 
If you find the above interesting then we would gladly provide the necessary details in order to start the process.
 

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