Restrictions on sale of loans set to be lifted
As of January, funds will be able to buy all kinds of loans, including those collateralized by main residences with a taxable value of less than 140,000 euros.
The restriction is scheduled to be lifted from the start of the new year, having been the sole barrier keeping funds away from loans secured by main residences, as well as properties covered by the provisions of the so-called Katseli Law that protects debtors’ assets.
When a fund buys mortgage secured loans, they also take on the role that the bank had to date, as the mortgaged assets are transferred along with the loans.
As of January, funds will be able to buy all kinds of loans, including those collateralized by main residences with a taxable value of less than 140,000 euros.
That means the buyer can set the procedure for the settlement of the debt in cooperation with the debtor or resort to forced measures, ranging from the issue of a payment order to the foreclosure of the property.
Banks have set as a priority the sale of loans that are not secured by properties, and credit sector officials explain that property-secured loans will only be sold if the target regarding the reduction of nonperforming loans is not attained. The portfolios currently up for sale consist of consumer loan and credit card debt.
