Filenews 22 February 2026 - by Eleftheria Paizanou
The intention of the parties to change the legal framework for real estate sales, on the eve of the May 2026 parliamentary elections, has sounded the alarm in the Government. Within two weeks, the parties have submitted five new law proposals, while another 20 party proposals are pending in Parliament, some of which have passed their purpose.
At all costs, the parties want to close the chapter of foreclosures before the elections, so that they can use it during the pre-election period. And this, despite the fact that the parties are declaring that their proposals are not of a pre-election nature. It is worth noting that the legislative regulations proposed by the parties do not only concern foreclosures, but also affect guarantors.
The plans and scenarios
The Government's economic staff is deeply concerned about the ongoing public debate, while it is concerned that, due to the suffocating timetables, the parties may not make the right decisions. It is recalled that, due to the parliamentary elections, the Parliament will dissolve itself on April 23, while until then seven sessions of the Plenary Session of the Parliament are scheduled. It is noted that the discussion of the controversial issue of foreclosures is scheduled for March 9 in the Parliamentary Committee on Finance. It is a given that by the time of the meeting of the Finance Committee, the parties will submit an additional number of new law proposals.
According to information from "F", the government has dealt with the issue and some discussions have already taken place. A senior government source told "F" that the President of the Republic, Nikos Christodoulides, instructed the Minister of Finance, Makis Keravnos, to consider the possibility of having, if possible, new legislative regulations for foreclosures. The technocrats of the competent ministry are doing exercises on paper, examining various scenarios, which are costed. Among the measures being considered is the strengthening of the measures available to borrowers when they appeal to the Financial Out-of-Court Dispute Resolution Body. Another scenario is the possible binding nature of the decisions of the Financial Commissioner.
The government's response
However, the last tools that the Parliament had given to borrowers in December 2023 are not being used to a satisfactory extent, with the result that the number of those who appealed to the Financial Commissioner is small.
The government side wishes, when the debate on the issue of foreclosures begins in Parliament, to have a new proposal ready, which will essentially be a response to the party proposals. What worries her, however, are the tight schedules. It is recalled that in December 2023, the Parliament had approved the operation of the Special Jurisdiction for non-performing loans, known as the Court of Foreclosures, before which borrowers could appeal to protect their main residence, worth up to €350,000. However, due to the non-mandatory nature of the measure, the Supreme Court considered that the operation of a special court for foreclosures is not necessary, as citizens can appeal under the previous regime to challenge loan agreements and loan repayments.
Auction success at 16%
Last month, in the context of the presentation of the e-auction platform by the Association of Banks and ACB E-Auctions, it was reported that from December 18, 2019 until January, more than 20,000 auctions.
In total, through the system, 20,042 properties went under the hammer electronically (they do not concern unique properties, as they may have gone under the hammer twice), of which 16% of the foreclosures succeeded, i.e. 3,216 properties, plots of land, plots, fields, etc. Physical auctions stopped in 2022. It is recalled that, between 2020 and 2025, foreclosures were periodically put on ice, either through legislative regulations by the Parliament or through voluntary suspension by creditors, i.e. banks and credit acquiring companies.
98 main residences were sold
According to Central Bank data sent to the Parliament, in the third quarter of 2025, more than 800 primary residences were in the auction process, the majority of which concerned properties worth less than €350,000. In the same quarter, according to the CB, 98 primary residences were sold, of which only five had a market value of more than €350,000. It is noted that in the corresponding quarter of 2024, the main residences sold amounted to five. In addition, during the third quarter of 2025, according to the CB, notifications were sent for the various stages of the sale of a primary residence with a market value of less than €350,000 to a total of 731 borrowers and for homes over €350,000 to 81 persons. In the same period, 388 Type I notices were served on mortgage debtors for the intention to sell a property worth less than €350,000 and 32 alerts for properties worth more than €350,000.
