June 28th, 2012

State to buy and lease back 25,000 “troubled” homes in three years, government decrees

The state asset manager MNV expects to buy 8,000 homes from troubled mortgage debtors this year, 7,000 next year and 10,000 in 2014, according to a decree published in the official gazette Magyar Közlöny.

If the number of homes offered for sale exceeds that target, homeowners will be selected based on criteria such as the number of children eligible for child benefits, the value of the property, the size of the loan and the number of people living in the household.

Debtors can stay in their homes after selling them to the MNV but must pay a low rent. The monthly rent for a Ft 10 million home will be Ft 12,500.

The MNV may cancel contracts with tenants if they fall more than 90 days behind on rent payments.

  • Rolrox

    This is ridiculous. Sorry for those that were caught out. But now we’re subsidizing those that didn’t pay attention in math class. If the average interest is 12%, then we are now subsidizing every 10M HUF to the tune of over 1M HUF yearly. As I didn’t go out and do something stupid, why should my tax money be covering 25K who did?

    Not fair, not right and promoting a culture of irresponsibility.

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