Temporary debt mitigation of real estate mortgage claims

Temporary debt mitigation of real estate mortgage claims have the objective to lower the debtors' financial burden of his real estate mortgages for a duration of up to five years in case the debtors are not able to meet their mortgage obligations. Payments will be made in accordance with the financial capacity and monthly payments correspond to 60-100% of reasonable rents on the rent market. 

The application is sent to the district court in the jurisdiction where the applicant has his legal domicile. The Debtors' Ombudsman can assist in filling in the application if necessary.

Documents to be delivered

• Your password to enter www.skattur.is/ or your Tax returns for the last three years as well as your last Tax Assessment Notice either in print or electronically (PDF)
• Your last three payslips
• Copies of all documents on the payment of pensions, benefits, child support or other income
• A certificate on family and marital status
• A confirmation from the bank which will be responsible for the payment services arising from the contract
• A confirmation by the mortgage creditor that other solutions for the financial difficulties have been explored but were found insufficient or could not be identified
• A copy of the last payment slips for unpaid mortgage debts
• Information on statutory payments in arrear during the last two years, e.g. for fire insurance,  co-op fees and property taxes.
• A mortgage certificate
• A written statement providing information on the real estate purchase, refurbishments of the flat and other obligations or factors causing financial difficulties. This needs to include information on which loans were obtained and for what purpose in case of re-financing