ISLAMABAD: The government decided in principle to grant commercial banks significant powers to take over mortgaged houses in case of default after a cumulative notice period of 90 days, in a move aimed at encouraging lending to the housing sector.
The proposed foreclosure law to amend “The Financial Institutions (Recovery of Finances) Ordinance, 2001”, currently under review by the National Assembly’s Standing Committee on Finance and Revenue, provides that where a customer defaults on payment o
90 days notice before taking someone’s home? That’s brutal. On one hand banks need security for housing loans, on the other hand people shouldn’t lose their homes that quickly.
This will actually make banks more willing to give housing loans which is desperately needed. Right now they’re too scared of defaults. Fair balance needed between lender protection and borrower rights.