Home Repossessions Soar as Moratorium Ends Here
- 24 Aug 2022 9:31 AM
- Hungary Around the Clock
More than 1,100 homes in Hungary were repossessed and sold by auction in a single month after the moratorium on repossession and evictions ended on June 15, RTL News reported.
After roughly two and a half years, the government lifted the ban on repossessions and evictions, which had been introduced after the arrival of the coronavirus epidemic.
This meant that, with a few exceptions, it was not possible for mortgage banks to evict home buyers who had fallen behind on repayments, or to repossess and then sell the properties.
According to NGOs working with people struggling to pay their mortgages, since the lifting of the ban, they have had 30% more clients than previously who have asked for help because of some kind of repossession procedure.
Moreover, the number of non-paying debtors may increase significantly in the coming months, as those with mortgages are hit by inflation, increases in the cost of living and higher interest rates, they said. The situation will deteriorate further, they argue, after the interest-rate cap is also lifted.
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