Försnävas

Försnävas is a Swedish term that translates to "to foreclose" in English. In a financial sense, it refers to the process of selling a borrower's property when they are unable to meet their mortgage payments. This typically occurs through foreclosure procedures established in the country's mortgage laws.

In Sweden, the concept of försnävas is governed by the Swedish Subordination and Mortgage Rights Act, also known as the Lag om under551ena och pantintressena. According to the act, mortgage lenders have the right to repossess a property if the borrower fails to pay their mortgage on time. This allows the lender to cover some or all of their losses by selling the repossessed property.

Försnävas can occur either through a formal foreclosure procedure or through a private sale of the property by the lender. The latter process is called "arförsäljning" in Swedish, and according to Swedish law, the lender is required to offer the borrower a chance to exercise their right to default before proceeding with a sale.

Försnävas can have significant consequences for the borrower, who may be left without their primary residence and potentially with significant debt to the lender. Swedish lenders, however, are typically willing to work with borrowers who are facing difficulties in making their mortgage payments, often offering alternatives to foreclosure, such as temporary deferment of payments or refinancing options. Information on available options should be sought immediately after noticing difficulties in making mortgage repayments.