A Polish news outlet reported this week that the country’s Finance Ministry has finished preparation of reverse mortgage regulations. Polish News Bulletin said the mortgages will be offered by Polish banks, foreign banks operating in Poland and crediting institutions supervised by the country’s Financial Supervisory Council.
The article details the reverse mortgage proposal, which it says assumes seniors owning property will be eligible to mortgage the property in exchange for monthly installments to be paid by the bank. Ownership rights will be retained until the owner’s death, the article reports. “The bank will be eligible to take over the property only in case the heirs of the deceased owner fail to pay back the mortgage,” it says.
The reverse mortgage has been designed to help provide seniors with a safe way to gain extra funds and protect them from dishonest providers of financial services, according to the report. Similar to U.S. reverse mortgage policy, the rights of the heirs will be respected by securing a 12-month period for the declaration of repayment of the mortgage.
RMD reported last July on the bill introduced in Poland that would bring reverse mortgages to the country.
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Written by Elizabeth Ecker