Compulsory house sales rise 50%

The number of home owners forced to sell their property because they can no longer pay their mortgage has shot up by almost 50% over the past few months, the national housing guarantee organisation NHG said on Wednesday.

Figures from the NHG scheme show falling house prices, unemployment and divorce are forcing more people to sell their properties. In total, the number of people forced to sell their NHG-guaranteed home at a loss rose 48% to 2,284 in the first six months of this year.

At the same time, far fewer people sold their property at auction – where prices are usually much lower than on the open market.

‘This is deliberate policy,’ NHG director Karel Schiffer told Nos television. ‘We advise people to try to sell their home in time and to avoid a compulsory purchase order.’

The NHG guarantee currently covers premises valued up to €320,000. The guarantee means if people default on a NHG mortgage, a special home ownership fund (the WEW) will pay off the debt.


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