As a reflection of the economic crisis recently faced by Brazilians and the rise in unemployment, the number of people unable to pay their home mortgage installments is growing. This leads to an increase in the number of properties going to auction. An article published earlier this month on the Blog do Wagner Gil provides an explanation from attorney Roberta Costa, a specialist in real estate law.
According to the professional, when the borrower is in arrears on the installments, a notice is sent so that payment of the debt related to the overdue installments can be made within 15 days. However, if this debt is not settled within the deadline, the person ends up losing ownership of the property to the creditor. In other words, the home reverts to the bank and is auctioned.
However, the profit from the property repossessed by the bank must be paid to the former owner. By a decision of the Federal Regional Court of the 4th Region (TRF-4), Caixa Econômica Federal (Caixa) had to pass on to the former borrowers of a property repossessed for non-payment the difference between what they owed and the appraisal value. The article emphasizes that, according to the decision, the bank cannot appropriate the amount exceeding the sum owed, under penalty of unjust enrichment.
Read the full case, disclosed last year by the press office of the TRF-4.
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