Consumer loans can be deferred
In order to alleviate the consequences of the corona crisis, the federal government has mandated the repayment of interest, principal and loan repayments for consumer loans for an initial three months. The banks' termination rights are also excluded during the same period. "In Article 5, § 3, the law provides help for property buyers and builders who have lost income due to the exceptional circumstances caused by the COVID 19 pandemic and who are currently unable to pay their debts from property purchases or house building," explains Holger Freitag, Trust lawyer of the Association of Private Builders (VPB). "However, the special law does not apply to payment requests by contractors, planners, craftsmen from contracts for work, developers, construction and consumer contracts," he continues.
Burden of proof on the consumer
However, the burden of proof rests with the consumer, in this case with the builders themselves: builders who are experiencing payment difficulties should talk to their banks and look for solutions together. The lender is also able to refuse the deferral if it is unreasonable for him. In addition, only loans that were taken out before March 15, 2020 can be deferred.