Financial Services, Latvia, Legislation, Loan, Real Estate

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 14:50

Part of mortgages in Latvia to be considered non-recourse loans

BC, Riga, 25.09.2014.Print version
Today, Latvian Saeima approved amendments to the Insolvency Law, according to which bank mortgages issued to borrowers who buy a home/apartment, and have no other domicile, will be considered non-recourse loans, informs LETA.

These amendments will be apply to insolvency cases initiated after January 1, 2005.


Saeima's Economic, Agricultural, Environmental and Regional Policy Committee previously agreed not to support the proposal.

 

Nevertheless, today Saeima decided otherwise and supported the proposal, stipulating that it will apply only in those cases where the debtor's home/apartment is sold due to the person's insolvency.

 

This means that after selling a property, which served as security for taking out the mortgage, the remaining debtor's obligations will be nullified.

 

The amendments to the Insolvency Law were passed by Saeima in the final reading today.






Search site