Filenews 16 February 2026 - by Theano Thiopoulou
Despite the fact that, according to data from the Association of Cyprus Banks, about 36% of posted electronic auctions in Cyprus are not completed due to agreements between lender and debtor, the real picture of the market reveals even higher suspensions rates — potentially reaching or even exceeding 70% of all cases.
According to reliable information, the overall auction suspension index is significantly higher than that published by ACB E-Auctions, as many foreclosures are cancelled before they are even made public on the platform. This percentage, as we are in a position to know, exceeds 60%. These are auctions that are in the preparation phase, but are eventually suspended due to successful settlement or repayment of the loan, before reaching the posting stage.
Protected dwelling
This trend is even more pronounced when it comes to properties involving a primary residence (PPR – Primary Residence). In this case, according to executives of the loan management market, the percentage of cancellations is estimated to exceed 70%, as both debtors and management companies give priority to compromise solutions, avoiding foreclosure at social costs. These figures show that, in the majority of cases, the auction process acts more as a lever to pressure an agreement than as a tool for mass sell-offs.
Safety valves
It is reminded that the mortgage debtor reserves the right to participate and preferential redemption in the event that the value of his home does not exceed €350,000, while the process is now carried out exclusively electronically, with institutionalized transparency and equality valves.
Demystifying numbers
The real data highlight the need for a realistic and dispassionate assessment of the situation around foreclosures. The public image that many are trying to present, either because they have an economic or political interest, about mass auctions does not reflect reality, where regulations, compromises and the willingness of the sides to find viable solutions prevail. It is no longer a question of imposing a moratorium, but of strengthening trust and transparency, based on the balance between social protection and financial stability.
Protection by country
In Greece, the legal framework has shifted from the Katseli law (protection based on judicial judgment) to the new bankruptcy code that provides for bankruptcy and liquidation, with provision for an acquisition and leaseback agency for vulnerable people.
In Cyprus, the legislation (Real Estate Transfer and Mortgage Law) allows for faster procedures, recently amended (2023) to involve the Financial Commissioner, aiming for more borrower-friendly arrangements. Spain is traditionally strict, with legislation that allows confiscation even with a slight delay. Following judgments of the CJEU (Court of Justice of the European Union), safeguards have been introduced for unfair terms.
