Justice Ministry confirms: banks may seize flats

13:18, 18 February 2009
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 Without court ruling...

On Tuesday, the Justice Ministry of Ukraine informed that banks have a right to seize flats from their clients who fail to fulfill a mortgage agreement. Banks may seize flats if payments are late for more than 90 days. However, they are not ready to do it actively – it’s more profitable for a credit institution to reorganzie the debt. At the same time, lawyers say the bank’s decision to seize the flat may be appealed against in court.

Kommersant-Ukrayiny daily recalls that earlier mortgage objects could have been seized only on basis of a court ruling.

Now credit institutions may seize flats from mortgagees without any court rulings, if the latter violate the agreement.

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