On loans taken out within the scope of the law, will the bank seize the property if there are 2 consecutive unpaid installments?
There are no significant changes that the law brings regarding this matter. As set forth by the Consumer Protection Law No: 4077, banks can only request acceleration of debt (full payment of the debt) within 1 month from consumers who miss 2 consecutive installment payments. Legal proceeding will be initiated only for consumers who do not comply with this request. Consumers who fail to meet this obligation will be notified by certified mail within 5 working days following the default date.
With the changes in the Execution and Bankruptcy Law, the collaterals and penalties have been increased for consumers who maliciously try to prolong the duration of legal proceedings. Thus this situation will prevent the whole system to be damaged because of such malicious consumers and will make a positive contribution to the system as a whole.
As the loans provided towards the purchase of a property will be subject to the Housing Finance Law after the law comes into effect ...
As known, currently the loans defined as the housing loans are loans that are provided for the purchase of a property or the refinancing of these types of loans.