Foreclosures suspension ending in Cyprus

Tuesday marked the end of the most recent three-month suspension of property auctions in Cyprus, imposed by a resolution of the House of Representatives in Nicosia. Starting on Wednesday, numerous foreclosure letters are expected to be sent out.

Many foreclosure proceedings will begin in mid-March, 45 days after the letters are sent, a process that has not occurred since early November. As a result, starting Wednesday, a large number of publications for property sales in Cyprus is expected, as required by law for press publication.

After two years of the suspension of foreclosures due to the pandemic on the part of the banks, and three months of consecutive suspensions at the initiative of parliamentarians, it is estimated that a sufficient level of foreclosure sales will be accomplished by March 2023.

If there is no extraordinary three-month suspension of foreclosures once Parliament reopens, Kathimerini estimates that there will be between 100 and 200 foreclosure sales per month going forward. And these figures are justified because a sizable stockpile of properties linked to troubled lending has accumulated.

The entire framework of foreclosures and how to make it more equitable for the borrowers’ side, while also making it more advantageous for the banks and credit buyout firms, is now in the hands of the new government and Parliament. In order to determine whether or not a continuous suspension will be repeated, the new government will have to consult with Parliament and examine both sides of the issue.

First, it remains to be seen whether the much-touted special court will actually be established to hear only cases involving real estate, loans, banks and credit buyout firms and to serve as a focal point to which every borrower can turn if they are truly entitled to it in order to get justice. 

Second, they should work with the Treasury to determine when and how the mortgage-to-rent project will move forward in order to assist the most vulnerable borrowers, those who are unable to make any payments to keep their homes.

According to data in Kathimerini’s possession for the years 2020 and 2021, only 233 properties were sold during the 1,528 auctions that were held in total.