The state-run Housing Financing Fund (HFF) has foreclosed on 34 properties from companies this year that bought or constructed them with loans from the fund for the rental market but had to default. In all of 2007, only 32 properties were seized.
“Before 2007 this hardly ever happened,” assistant managing director of HFF Ásta H. Bragadóttir told Morgunbladid.
When the HFF is forced to foreclose on such properties tenants are obligated to move out of their apartments one month after they are notified of the situation. In such cases, the HFF often offers tenants a chance to purchase the rental apartment where they live.
“The HFF is not a rental company and does not rent apartments,” Bragadóttir said, however adding, “the fund does try as hard as possible to meet the needs of [tenants] and be flexible when they move out of the apartments.”
Bragadóttir added that special dispensation is always considered for schoolchildren so that they won’t have to move mid-term.