Low income, indebted Romanians could dodge foreclosure

Romanians who got mortgage loans and can’t pay their installments anymore might benefit from the temporary cancellation of the foreclosure procedures for their homes until they recover financially, without paying any guarantees, according to new a legislative proposal. If this project is approved by the Parliament, foreclosure will be temporarily cancelled for those who prove that the real estate asset to be foreclosed is the only home they have and that they don’t earn more than the guaranteed minimum income for each member of their family, according to Mediafax. The initiators of the project also suggest that in credit contracts in which the bank initially evaluated the asset and determined that it was valuable enough to cover for the loan, the creditor should not be able to extend foreclosure to the debtor's other assets if the asset lost its market value. Among the initiators of the project is social-democrat senator Ilie Sarbu, Prime Minister Victor Ponta’s father in law. There are no official statistics on how many Romanians can’t afford to repay their mortgage loans anymore and are in the situation to have their homes foreclosed. editor@romania-insider.com