Sharp increase in Dutch forced home sales
The Homeownership Guarantee Fund WEW reports that a growing number of home owners are forced to sell their houses at a loss, mainly as the result of divorce and unemployment.
In the first three quarters of this year, 1,400 homeowners submitted claims to the WEW’s National Mortgage Guarantee NHG compared to 981 in the same period last year. The forced sales were the result of divorce in 47 percent of these cases and of unemployment in 22.
NHG works with the Homeownership Guarantee Fund. The Homeownership Guarantee Fund was established in 1993 on the initiative of the Ministry of Housing, Spatial Planning and the Environment, and the Association of Netherlands Municipalities. Its main aim is to responsibly promote the purchase of private property.
When homeowners are forced to sell their homes, the proceeds of the sale are not always sufficient to pay off the remaining mortgage debt. If that is the case, NHG pays the residual debt to the mortgage lender. This guarantee is only available for mortgages of up to 350,000 euros.
© Radio Netherlands Worldwide