From the 6th, income from refinance loans for victims of jeonse fraud will be alleviated… Loan limit expanded

From the 6th, income from refinance loans for victims of jeonse fraud will be alleviated…  Loan limit expanded Policy

Supplementary measures to support victims of lease fraud… Income up to 130 million won, deposit 500 million won, loan limit up to 400 million won

Starting on the 6th, the scope of low-interest refinancing loans for victims of lease fraud will be expanded from annual income of 70 million won to 130 million won.

The deposit will be expanded from 300 million won to 500 million won for a house, and the loan amount limit will also be increased from 240 million won to 400 million won.

On the 5th, the Ministry of Land, Infrastructure and Transport announced supplementary measures to support victims of lease fraud.

In the four months since the enforcement of the Special Act on Jeonse Fraud in June, 6,063 cases have been recognized as victims of Jeonse Fraud, but supplementary measures have been prepared in response to criticism that there are blind spots that exclude some support or inconveniences in the procedures.

First, it was decided to relax the requirements for low-interest refinancing loans to ease the interest burden of victims of rental fraud who have difficulty continuing to live in their existing rental homes.

Existing refinancing loans allow couples with a combined annual income of 70 million won or less and a deposit of 300 million won or less to borrow up to 240 million won at an interest rate of 1-2%. However, there were cases where some were excluded from support due to strict loan requirements such as income.

The government decided to relax these requirements and increase annual income to 130 million won, deposit to 500 million won, and loan amount to 400 million won from the 6th.

To relieve victims’ housing insecurity, the provision of public rental housing will also be expanded.

Currently, existing homes are provided for public rental only when the victim transfers the right to preferential purchase, but it has been decided to provide nearby public rentals first to victims of trust fraud who do not have the right to preferential purchase.

You can live there for up to 20 years at 30-50% of the market price.

Emergency housing is also provided to foreigners and overseas Koreans at risk of eviction using public rental housing. In this case, you can stay for up to 2 years at 30% of the market price.

The government has also decided to strengthen legal support for victims of lease fraud.

If a victim wants to take legal procedures such as securing executive authority to start an auction (deposit payment order, deposit return claim lawsuit), rehabilitation/bankruptcy, or claiming compensation for damages against a licensed real estate agent, we will connect with a legal expert to assist in handling the lawsuit on his/her behalf. The cost of legal expert assistance is supported by the government within a limit of 2.5 million won per person.

In addition, the victim must bear the stamp, delivery fees, and other actual expenses required for the lawsuit.

In addition, even if the inheritance process of a deceased lessor is not completed, we decided to support the legal process of requesting a judgment for the appointment of an inherited property manager so that victims can smoothly proceed with follow-up procedures such as auctions.

A victim support management system will also be developed.

Until now, victim applications could only be submitted in person at local governments, causing difficulties for victims who were unable to visit in person due to their livelihoods.

Once the system is developed, victims will be able to apply for damage online, check the progress, and receive a decision right at home when a decision is made.

In addition, it was decided to disclose the contents of the Victim Support Committee meeting, which determines victims of lease fraud. The committee regulations were changed to allow the committee to disclose the contents of the meeting after deciding on the target, scope, and content.

In order to prevent cases of unfair rejection, we decided to strengthen guidance on the reasons for rejection and objection procedures when sending a decision on damage to jeonse fraud. If the appeal is dismissed, a re-appeal is allowed if circumstances change.

Park Byeong-seok, head of the Ministry of Land, Infrastructure and Transport’s Jeonse Fraud Victim Support Group, said, “We will continue to promptly determine victims and supplement our support measures for victims of Jeonse fraud.”

Inquiries: Ministry of Land, Infrastructure and Transport Jeonse Fraud Victim Support Group Damage Support Management Division (044-201-5233), Housing Policy Director Housing Fund Division (044-201-3339), Housing Welfare Policy Director Housing Welfare Support Division (044-201-4479), Housing City Guarantee Corporation Jeonse Fraud Victims and Public Auction Support Center (02-6021-8781)

Ministry of Land, Infrastructure and Transport

Source: Policy news


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