incyprusproperty 16 October 2024 - by Eleftheria Paizanou
The Ministry of the Interior came up with a formula for the securitization of stranded buyers' properties, after the upheaval caused by the recent decision of the Court of Appeal, by which the legislative regulations made on this hot issue were deemed unconstitutional. The Ministry of the Interior, in collaboration with technocrats and other stakeholders, met twice in the last few days, reaching an arrangement, which is estimated to contain no legal risks. The preferred solution is to foreclose the properties for those buyers who had put the property as collateral to obtain a loan and then the land developer re-mortgaged it.
It is estimated that around 2,500 stranded property buyers who had mortgaged their property to obtain a home loan and then the land developer re-mortgaged it to obtain additional borrowing from the bank, will thus receive title. the completion of the overall project. A competent government source told "F" that the granting of the property title for the 2,500 real estate buyers will be done with the previous process of real estate release. However, legal hurdles seem to be emerging to legislate for all property buyers. As we were told, the Legal Service stated that it is legally and constitutionally difficult to satisfy all 9,500 real estate buyers whose applications for securitization are pending. A problem appears to exist for cases where no separate title has been issued, due to non-payment of loans by land developers, as well as for cases where there is a separate title but there are encumbrances on the property. We're told the 5,000 unserviceable property buyers would be turned away even before the law was ruled unconstitutional by a court. Today, the Minister of the Interior, Konstantinos Ioannou, is expected to present the government's proposal to the members of the Parliamentary Legal Committee. It is recalled that three weeks ago the Parliamentary Legal Committee reconvened and the banks and credit acquisition companies proceeded to freeze sales of properties related to stranded property buyers, until the end of the year. Because of the Court's decision, many borrowers received letters from creditors informing them that their property would go under the hammer.