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Lenders designate 3,185 homes for inclusion in govt assistance program for Q2

Hungarian lenders designated 3,185 foreclosed properties for inclusion in the government' NET assistance program for the second quarter, fresh data from financial market watchdog PSzÁF show.

Lenders used 84% of the designation quota, the data show.

Under the program, the National Asset Manager (NET) will buy foreclosed properties designated by banks and allow the borrowers to continue to reside in their homes as tenants.

Lenders have designated 8,067 foreclosed properties for the program since legislation establishing designation quotas came into force last October.

The legislation limited banks to designating 2% of homes in their non-performing loan portfolios for sale in Q4 2011. The quota is 3% per quarter in 2012. It will rise to 4% per quarter in 2013 and 5% in 2014. The quota will end from 2015.

Under an agreement between the government and the Hungarian Banking Association signed last December, NET is to buy 25,000 properties by the end of 2014, purchasing 8,000 in 2012, 7,000 in 2013 and 10,000 in 2014.

NET told MTI on Wednesday that it had signed the first contracts on the transfer of a property and a lease with a tenant under the program. Banks had until April 15 to designate foreclosed properties for the Q2 quota, it added.

NET said the market value of the designated properties was between HUF 5.1 million and HUF 7.8 million apiece. Purchase prices were between HUF 2.5 million and HUF 3.9 million, it added.