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A comment on Mortgage Rates Could Tank Home Prices by 20%, Fed Study Finds. Parent comment

Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by gitanovic on Wednesday November 16, 2022 @11:06AM (#33625417)
So what happened to the property? Did people with an invalid loan get a free property? Or it was forced to be sold to repay the loan in PLN? Or the owed value was calculated in 2007/8 PLN value?

Sorry for having so many questions, but this seems to open a pandora's box of complications

[ Parent | on HN ]
Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by 988747 on Wednesday November 16, 2022 @12:01PM (#33626463)
No, no one is forced to sell. The two available options (depending on some nuances of how your loan was actually set up) are:

- Your loan is converted to PLN, you get a refund of all the extra costs incurred by the currency exchange rates, and you continue to pay off your loan in PLN.

- Your loan is considered invalid and is abolished, which means that you have to pay back the original sum to the bank, and the bank has to repay you all the payments you made over the years. If your loan was issued a long time ago you typically will come ahead (over years your payments add up). This means you keep the property and are debt-free. If it turns out you still have a significant amount to pay off you can refinance it.

[ Parent | on HN ]