Thursday, October 9, 2014

Reverse Mortgage: The Senate bill improved. Law and Justice to sue … – Polish Radio

Reverse Mortgage: The Senate bill improved. Law and Justice to sue … – Polish Radio


  You can give your apartment in exchange for lifetime care, but it is risky “transaction” , photo: Glow Images / East News
 

The Senators decided it would be safer for the borrower – said after the vote, Senator Kazimierz Klein. Chairman of the committee of public finance said that the essence of the Senate debate was to improve this bill, to the greatest extent possible be protected consumers or borrowers. – We realize that the main customers of this law will be older people who do not fully understand banking regulations – said the senator.

Contract risky for both sides
Kazimierz Klein added that the agreement on the reverse mortgage would be risky for both banks and customers, because you will need it to predict the unpredictable situations. Therefore, banks will want to determine the loan amount as low as possible, while the consumer thinks that his property is worth more, and you may feel cheated – said Klein. According to the senator, however, and the good side of the law.

Reverse Mortgage. Experts warn: be careful with the new rules & gt; & gt; & gt;

Paradoxically, it may work prorodzinnie. It may cause those who should feel obliged to look after their parents, the elderly or those who are in different situations can not handle and are the owners of the property, will be more interested in their fate.
amendments the Senate has yet to accept the Sejm.

The Senate has also proposed a number of amendments of a legislative nature and doprecyzowującym.
This loan will be able to offer certain institutions
Act reverse mortgage defines the rules and procedures for the conclusion of the contract the reverse mortgage, the rights and obligations of the parties and the rules for the settlement of obligations arising therefrom. According to it, the credit will be able to offer only the banks, branches of foreign banks or credit institutions and credit institutions operating across borders, which are supervised by the Financial Supervision Commission.
The right of withdrawal
Information provided before signing the agreement the bank will not constitute a binding offer and will only be a simulation, in particular in terms of the amount of the reverse mortgage. The exact amount of the loan may be determined only after assessing the value of the premises by the valuer. Additional protection for borrowers will be entitled to withdraw from the contract without giving any reason within 30 days from the date of its conclusion.
The heirs will be able to pay off debts
The Act also provides that the heirs of the borrower, if they want to keep the property, get 12 months to pay off debts to the bank. In cases where they do not, the property is to be transferred to the bank, that if its value exceeds the sum of the amounts owed to the bank, this will pay the excess to the heirs. In contrast, if the value of the property did not cover the entire amount owed to the bank, will not be able to submit their claims in this respect.

Experts safety reverse mortgage.

source: TVN / x-News

Law and Justice law to sue TK

Senators, Law and Justice challenged before the Constitutional Court Act on the reverse mortgage. In their view, the provisions of the Act violate Art. 64 of the Constitution, which regulates the ownership and inheritance.
Senator Henry Cioch argued at a press conference that the law will lead to the fact that the banks will take over the small amount of the property, the lien which is granted reverse mortgage. According to the senator this toxic product will lead to the fact that several million people for an unspecified amount will be devoid of any kind of property: land, building, premises and cooperative ownership rights to the premises.
Senator Bierecki said that in developed countries such as the United States or in Canada, many people use a reverse mortgage. He stressed, however, that there is different than in Poland, economic and legal environment. – No change in this environment the introduction of this product, based on so badly written act unilaterally protecting the interests of the banks will be very dangerous and cause devastating social consequences, unfortunately irreversible – Bierecki said.

“This outrageous attempt to expropriation people “
Senator Bogdan Bunch called the law outrageous attempt expropriation people. As he said – the banks will prepare a loan agreement, and they will carry out the valuation of the property. – We are concerned that this valuation is scandalously undervalued, and the provision will not be paid for life – he said. He added that the bill is particularly dangerous for older people living in the centers of large cities, where apartments have great market value.
PiS senators today voted against the adoption of the bill by the Senate. Although this law was passed with amendments. The most important of them provides that a contract for reverse mortgage should be included in notarial form. Amendments of the Senate has yet to accept the Sejm.

IAR / PAP, abo, Celebrating

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