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
Govt mulls allowing commercial banks to take over mortgaged houses 90 days after default
Byadmin
May 7, 2026
90 days default leading to house repossession is extremely harsh on families. Need more protection.
Banks have become too powerful in Pakistan. This will increase their stranglehold on common people.
On the other hand, default rates hurt the banking sector. There has to be a sensible middle ground.
This will make housing even less affordable. People already struggle with inflation now this threat.