Today marks a crucial development in the landscape of property foreclosures as the Parliament is set to deliberate on two governmental bills aimed at fortifying the legal framework surrounding foreclosures.
The objective is to bring these legislations to the Plenary on the upcoming Friday, which is the last scheduled session before the Parliament adjourns for the Christmas holidays.
The suspension of foreclosures for primary residences valued at €350,000 will expire at the end of the month.
To avoid extending the freeze on foreclosures, the legal framework must be strengthened. A focal point seems to be the draft law on Special Jurisdiction, known as the Foreclosures Court, which will be discussed this morning in a joint session of the Parliamentary Committees on Finance and Legal Matters.
Due to reservations expressed by AKEL, the Green Party, and the governing parties, amendments are expected to be proposed.
Additionally, today’s agenda includes the conclusion of the discussion on the bill regarding the expansion of the powers of the Financial Commissioner. Yesterday, the government coalition parties – DIPA, DIKO, and EDEK – submitted two legislative proposals to the Plenary, reinforcing the rights of borrowers addressing the Financial Commissioner for auction-related matters and non-performing loans secured by a primary residence.
The specific proposals prepared by the Ministry of Finance will strengthen the bill concerning the expansion of the Commissioner’s powers.
In particular, the legislation, endorsed by MPs Christiana Erotokritou (DISY), Elias Myrianthous (EDEK), and Alekos Tryfonides (DIPA), entails an amendment to the Law on the Transfer and Mortgage of Immovables to safeguard the rights of mortgage debtors of primary residences.
With the second legislative proposal, the powers of the Financial Commissioner are extended for out-of-court dispute resolution within 45 days between mortgage lenders and mortgage debtors regarding the amount declared by the mortgage lender in the “IA” notification during the foreclosure of a primary residence valued up to €350,000.
It is further stipulated that the right to appeal to the Financial Commissioner is granted to all mortgage debtors of existing non-performing loans with a primary residence value of up to €350,000.
Simultaneously, mortgage debtors of new non-performing loans who do not cooperate with authorized institutions, as specified by the Central Bank’s Code, are not eligible to appeal to the Commissioner as they are not considered eligible debtors.
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