Temporary takeover of a loan

In certain circumstances, HMS allows temporary takeover of housing loans. The buyer is then protecting his interests for three possible reasons:

• A creditor buys a property at a forced sale in order to protect his mortgage claim and intends to sell the property immediately.

• An apartment with an existing mortgage is accepted as partial payment towards a more valuable apartment.

• A purchase agreement has been cancelled and the owner needs a deadline to sell the property again.

Conditions

• A temporary takeover is granted for 12 months and the apartment must be sold within that time.

• If the apartment is not sold due to uncontrollable circumstances, the temporary takeover may be extended for up to an additional 12 months.

• HMS reserves the right to cancel the loan if no buyers have been found for the apartment by that time.

• A takeover will not be permitted until arrears have been paid up.

• The validity period of the HMS approval is based on the date of receipt of the signed application.

Application

The application must include the names and kennitala of the new payer and the current payer, together with information on the existing mortgage the new payer is taking over.

Supporting documents

The application must include, as applicable:

• A purchase agreement for the relevant property.

• The cancellation of a purchase agreement.

Cost

11.000 ISK