Postponement of payments, debt modification or extension of loans
If payment difficulties are caused by unexpected, temporary difficulties due to illness, accidents, unemployment or other unforeseen events, customers can apply for a default debt modification, an extension of the credit period and/or a temporary suspension of payments on the Housing and Construction Authority's loans.
- Postponement of payments, debt modification or extension of loans
These resources can be used together. For example, defaults can be added to the loan principal and loan payments can be postponed during a temporary problem. It is important to use the deferral option sparingly because payments are higher after deferral.
The deferral remedy is normally applied for as short a time as possible, and if the applicant has several loans at HMS, an attempt is made not to apply it to all the loans in order to increase the likelihood of a permanent solution to the problem.
The conditions for payment difficulties assistance are as follows:
- That payment difficulties are caused by unexpected temporary difficulties due to illness, accidents, reduced income, unemployment or other unforeseen events.
- That other creditors of the applicant also agree to provide assistance.
- That the applicant's payment burden, according to the credit rating exceeds the payment capacity or is foreseen to be so.
- That the applicant's payment burden after debt restructuring and/or suspension of payments and/or extension of the loan period can be accommodated within the payment capacity
