FORECLOSURES OF STRANDED BUYERS ARE FROZEN UNTIL SPRING

 Filenews 18 January 2025 - by Eleftheria Paizanou

For a few more months, Parliament succeeded in refrigerating mortgage sales belonging to trapped property buyers, until the new legislation prepared by the Ministry of Interior is approved, after the law was ruled unconstitutional by the Court of Appeal last summer.

Credit acquiring companies and KEDIPES responded to the call of the chairman of the parliamentary Committee on Legal Affairs, Nikos Tornaritis, to give a new extension to the suspension of the law, as it had expired at the end of December 2024.

The credit-acquiring companies, in a letter forwarded to Parliament, consent to the suspension of auctions for this category of borrowers until April 30, 2025. In its letter, the association assures that they will not proceed with auctions or property recovery until April 30, in the case of bona fide buyers who have already submitted an application to the Land Registry for the purpose of transferring to them a separate title deed.

At the same time, it clarifies that during this period the sending of relevant notices for foreclosures will continue to be done normally. "Sending the notices to interested parties is positive so that they can mobilize and provide mortgage lenders with any necessary evidence to support any legal rights over the properties, which must be taken into account."

KEDIPES assures that the company will not proceed with sales or recovery of real estate until March 31 in cases of trapped property buyers, with the intention that they submitted a request to the Land Registry to obtain a title deed.

Changes to the bill

The Ministry of Interior in the new bill it is preparing made six changes. For all applications submitted, it will be necessary to provide the written consent of the persons for whose benefit the previous liens act.

Under the bill, the director of the Land Registry will be able to cancel encumbrances and prohibitions. Subsequently, the property can be transferred in the name of the buyer, regardless of the encumbrances. In relation to applications for which there are only subsequent encumbrances in the contracts for the sale of the property, they will continue to be examined on the basis of existing legislation. Also, the Director of the Land Registry will be able to reject applications if within 60 days from the day of submission of the application the relevant information is not provided.

A provision is added that will provide for the termination of the filing of new applications for late submission of a sales document following a court decision.