Friday,
August 29, 2008
The
ANNOTICO Report
It
was so Simple! The Economic Minister encouraged the
Italian Banking Association to Offer Homeowners an opportunity to
"Freeze" the Monthly Payments on their First Mortgage, and
"Funnel" any Increases into a Secondary Mortgage that is
NOT Payable until the Expiration of the First
Mortgage!!! Just Like That!!!
MORTGAGE: MORE THAN 1 MLN ITALIANS CAN
RENEGOTIATE
(AGI) -
Renegotiate
mortgage payments, to be able to 'breathe' a little bit or keep what was
originally negotiated: this is the choice in front of more than a million
Italians that agreed to a variable interest rate mortgage before May 28th 2008.
Tomorrow, the
terms stabilized by the conventions approved by the Italian Banking Association
(Abi) and the Economic Minister last May by which the
banks must send a letter to their clients with the terms of the offer, will
expire.
The mortgage
holders will have three months of time in order to decide. In the document, the
institutes will have to present the different options that allow for possible
savings for the client, like a substitute for their mortgage.
Yesterday the
agreement counted the participation of more than 300 banks, equal to 90pct of
the sector.
RINEGOTIATE
PAYMENTS.
The renegotiation of payments regards variable rate mortgages and variable rate
contracts from before May 28th 2008, for first home buyers. Mortgage holders in
default on the date of May 28th 2008 will also be able to take advantage of the
offer.
The procedure
allows for a reduction in the cost of the payment, which will become a fixed
interest rate starting on the third payment after the start of the agreement.
The difference between the old and new payments will come together in a
secondary account on which will a ten year Irs tax
will be applied, which can increase to 0.5pct, and will be reimbursed after the
complete payment of the mortgage.
Also in case of a
renegotiation there are no penalties for the anticipated payment of a mortgage
or of the secondary account.
http://www.agi.it/business/news/200808281805-eco-ren0079-art.html
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