More and more often it happens to be temporarily in difficulty with the payment of the loan installments. This is why the solidarity fund was set up and the possibility of suspending the mortgage payments. The measure is provided for by law 244/2007 and refinanced with the Save Italy decree . Until 31 December 2019 it is possible to obtain the suspension of the loan for 12 months, thanks to the agreements stipulated by the ABI and the consumer associations.
What is the suspension of the loan and who is responsible for it?
The suspension of the loan is an economic aid that in this period of general crisis has taken on even more importance. This aid is foreseen thanks to the law 244 of 24/12/2007 with which the Solidarity Fund was instituted refinanced through the so-called ” Save Italy Decree “.
Stopping mortgage payments is a right of citizens who find themselves in situations of economic difficulty in the event of loss, reduction, suspension of work but also handicap or death .
Suspension of mortgage payments, who can access?
To obtain the mortgage suspension it is necessary to return to categories that prove the actual situation of serious economic difficulty.
- death of the applicant
- reduction of working hours
represent some of the necessary indicators. The installment loan suspension for death as well as that for job loss, it can be obtained by starting the necessary practices.
Suspension of mortgage installments for loss of work
First of all, at the time of the request for mortgage suspension, the state of unemployment is required, by the holder or one of the joint holders, which can occur in the event of termination of the employment relationship:
- subordinate (both for temporary and permanent employment);
It is possible to request the suspension of mortgage payments even when the applicant is in a condition of self-sufficiency linked to serious forms of disability .
In addition to unemployment status, there is a reduction in working hours for a period of at least 30 days from the possibility of requesting the suspension of the loan . As well as the workers who are awaiting the approval of the authorization provisions for income support treatments (ie the wage subsidy integration treatments) are entitled to do so .
Request for suspension of mortgage requirements
The Law n.92 of 28/06/2012 sanctions those that represent the requirements that the citizen must have in order to access the Solidarity Fund.
To be able to suspend mortgage payments, the applicant must declare that he has not used any additional benefits such as:
- public subsidies;
- suspension of the payment of the loan;
- reductions related to any mortgage insurance for risk coverage.
What are the economic requirements to request the suspension of the loan
To request the suspension of mortgage payments it is necessary that the citizen is the owner of a property considered ” first home ” and therefore principal residence . Furthermore, the Equivalent Economic Situation Indicator (ISEE) must not exceed € 30,000. See other first home discounts .
Can a suspension be requested on all mortgages?
Actually no, the mortgage must also meet certain characteristics, it cannot exceed a certain amount.
The mortgage suspension acquired by the bank can in fact take place only for mortgages not exceeding 250,000 euros and the request can be made only after the regular payment of the loan of at least 1 year. If delays had already been recorded in the payment of the installments these cannot be greater than 90 consecutive days.
A further situation that provides for the possibility of requesting the suspension of the loan is the death of the holder (suspension of mortgage payment for death). In this case the request must be presented by the co-holder (in the case of a joint loan) or by the heir, if the deceased is the sole holder of the loan.
Suspension of mortgage installments, documentation to be presented
The demand loan suspension should be sent to the bank that has granted him.
The documentation to be presented is the following:
- valid identity document (eg identity card)
- ISEE issued by a qualified body (such as the CAF).
In case of death of the holder (or joint holder) it is necessary to indicate the personal data of the deceased and the date of death.
Depending on the type of contract and the methods used to terminate the employment relationship, the documents to be submitted change:
- indefinitely : documentation certifying resignation from work for just cause
- for a fixed term or relationships of quasi-subordinate work or commercial representation or agency : a copy of the work contract and document that sets out the modalities through which the contract was interrupted
For all work interruptions that resign for just cause, the documents to be presented are:
- copy of the judicial sentence or the bilateral settlement in which the presence of conditions that led to the resignation of the worker can be proved;
- copy of the letter of resignation and deed with which the former employer confirms the just cause that led the employee to resign.
If the holder or the co-holder of the loan has been granted civil disability status of at least 80% (Law 104/92 ) or in any case of non self-sufficient conditions, it is advisable to attach the certificate issued by the Competent ASL that recognizes the applicant as a civil invalid.
Loan suspension schemes and participating banks
Application forms for the suspension of mortgages and the list of banks and financial intermediaries that adhere to the agreement between ABI and Consumer Associations that adhere to the initiative for the suspension of the principal amount of credits ( mortgages, loans and financial ) you will be able to find them here on the official portals of abi.it and conscious.it , to make you welcome thing we point out the files in pdf.
- List of banks
Mortgage suspension for companies, suspension of loan installments and personal loan
Thanks to the agreements stipulated between the Italian Banking Association (ABI) and business associations, companies can also take advantage of the mortgage suspension. The result of this agreement has been criticized since the 2014 Stability Law provided for the possibility to interrupt the payment of installments of loans from 2015 to 2017.
In reality, the possibility of suspending the principal amount of the loan for only one year and only once during the three years has been confirmed. So who, in this time frame, has already benefited from the suspension of mortgage payments for 12 months, will not be able to benefit from it again. If the suspension lasted less than 12 months, a moratorium can be requested.
What does the agreement provide?
There are three initiatives under this agreement:
- Companies in recovery : it is the suspension of mortgage payments . This request can be submitted by small and medium-sized companies considered to be “performing” or those companies not classified by the bank as being debtors or in any case suffering (even 90-day late payments are grounds for exclusion). The suspension also concerns medium-long term loans , even subsidized, and can have a maximum duration of 12 months. The interest will be calculated on all the remaining debt, and the expiry term remains the original one.
The banks reserve the right to grant customers more advantageous conditions than those established by the agreement with the trade associations. Within 30 working days from the issue of the application, the banks communicate the response to the company.
- Developing companies : activities of the ABI aimed at promoting the establishment of a new limit amount of the credit line to finance business projects .
- Businesses and the public administration : The Italian Banking Association promotes a new limit of bank credit to mobilize the credits of the Public Administration that belong to small and medium enterprises
The same agreement was also signed between ABI and other consumer associations.
How long is the suspension?
Therefore the agreement, signed on March 31, 2015, also refers to citizens holding personal loans or specific loans. The holders, thanks to this agreement, have the possibility to request the suspension of the personal loan installments .
The suspension of the payment of the loan can be requested by 31 December 2019, only once and for a maximum period of one year, 12 months.
The decree Milleproroghe 2018 , extends the agreement of 2015 between ABI, MISE, MEF and Consumer Associations for the whole of 2019 and 2020.
The renewed agreement provides for a suspension of the payment of the loan installments for a maximum of 12 months . During this period the borrower will have to continue to pay only the interest rate to the bank. Until 31 December 2015, the suspension of the payment of the loan had a maximum duration of 18 months.