State to buy and lease back 25,000 “troubled” homes

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.

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