The 2016 mortgage decree was approved by the government in April 2016 and provides for a new limit after which the bank can attach the mortgaged property. The most widespread form of mortgage in Italy, in fact, is the mortgage: this loan provides that, in order to facilitate access to credit for those who intend to buy a house, the building subject to the loan is used as a guarantee against the bank. The mortgage is a real guarantee, which reassures the credit institution of the possibility of making up for the exposure faced in the disbursement of the loan.
The question that many people ask concerns precisely when the property expropriation is triggered, it is often the first home, mortgaged in the event of non-payment of installments by the borrower. So when can the bank foreclose the house? The 2016 mortgage decree establishes that this measure is possible only after 18 unpaid installments . In fact, once this threshold is exceeded, the borrower is in default with respect to his contractual obligations and therefore may risk the expropriation of the house. However, this is an improvement on the previous proposals, which instead set this threshold at 7 unpaid installments, a much shorter period.
The mortgage categories to which these new rules on foreclosure apply are mortgage loans on residential properties
But also those aimed at the purchase or preservation of the property on land or on a planned or built property. Furthermore, if the proceeds from the sale of the mortgaged property exceed the value of the accrued debt, the surplus is the right of the consumer . If they are lower, you can agree that the sale of the asset extinguishes the entire debt.
However, the approval of the mortgage decree introduces other innovations, aimed at greater consumer protection
First of all, banks are obliged to clearly display all the information regarding the loan and the charges borne by the user: this must take place through a standardized European Prospectus , the Pies, which describes all the pre-contractual information , that is all the data relating to the loan you intend to subscribe, so as to guarantee the highest possible degree of transparency.
The banks are then called to greater clarity with regard to the APR , the annual percentage rate: the decree clearly requires that the customer be informed in the best way possible about the methods of calculation of this interest rate, which does not only count the interests , but also all ancillary costs (including preliminary investigation, registration, insurance, but not the notary fees). In general, the 2016 mortgage decree defines the criteria of transparency, correctness and diligence that banks should adopt.