Foreclosures to start with big debtors’ assets

The first online foreclosures, set to start on November 29, will concern the assets of individuals or enterprises with debts of 500,000 euros or more (in some cases over 2 million euros).

Villas, large buildings, historic buildings with one owner, plots of land, professional facilities and even parking spaces are among the assets slated to go under the electronic hammer as of end-November, when the online process finally begins.

The amount of debts banks are seeking from these foreclosures comes to tens of millions of euros and concerns loans issued between 2005 and the outbreak of the crisis, when credit flowed handsomely.

Such is the case of one property with a single owner that will be auctioned for that individual’s debts of over 1.5 million euros to two systemic banks. The amount banks hope to claim is just 100,000 euros, as it is common practice that the starting price is far smaller than the actual debt.

The banks have vowed not to auction the homes of vulnerable groups or families without any other assets, but bank sources cannot rule out any exceptions made either intentionally or not, as 98 percent of debtors have failed to update their property details.