Govt mulls allowing commercial banks to take over mortgaged houses 90 days after default

ISLAMABAD: The government decided in principle to grant commercial banks significant powers to take over mortgaged houses in case of default after a cumulative notice period of 90 days, in a move aimed at encouraging lending to the housing sector. The proposed foreclosure law to amend “The Financial Institutions (Recovery of Finances) Ordinance, 2001”, currently under review by the National Assembly’s Standing Committee on Finance and Revenue, provides that where a customer defaults on payment o...