Greens re-submitted for consideration to parliament three bills, which make changes in the context of sales of mortgaged housing and insolvency of problem borrowers.
It is worth noting that other parties have recently expressed their intention to make changes in the sale of assets and the borrowers' rights, especially after the corresponding proposals were rejected due to the suspension of the sale of assets in response to the consequences of the pandemic.
The first of three bills presented by green lawmaker Stavros Papadouris was to amend the law on mortgages.
The main goal is to protect owners who are facing difficulties in repaying their loans due to the financial crisis, in cases where the property is bound by a mortgage agreement or registered in the real estate registry.
It is added that the proposed innovations provide protection to owners from the risk of selling their property for ten years. In particular, the changes cover owners of basic housing, professional housing and agricultural land as they meet certain criteria. At the same time, the owners of such property are provided with concessions on the repayment of loans, with their exemption from the obligation to pay any taxes or other fees. As already noted, credit institutions will be safe, since non-payment of installments is not considered a crime. In this regard, it is added that creditors will be given the opportunity to collect loan installments in court.
The second bill is aimed at protecting the interests of mortgage borrowers by extending the loan repayment period from 30 to 90 days from the date of delivery of the notification.
It also provides for the appointment of two appraisers from a certain list, which is maintained by the director of the Land Registry, in order to ensure the objectivity of reports for determining the market value of the mortgaged real estate. In addition, environmentalists are proposing to oblige the mortgage lender to inform potential buyers about the mortgage property, instead of simply being able to provide information if they so wish.
The bill also provides for:
- An extension from three to six months of the period during which the sale price of the property is maintained at 80% of its market price and 50% of the market value is retained as a reserved price for an indefinite period.
- Deleting provisions regarding electronic auctions, and extending the notice period from 30 to 90 days in the mortgagee's mortgage in order to react in time.
- Exclusion of provisions requiring the inclusion of interest and any legal costs secured by the original mortgage prior to splitting into separate new mortgages.
This bill is essentially restoring the sales framework as it was before the July 2018 changes and tightening.
As for the third bill to amend the Insolvency Law, the purpose, according to the explanatory note, is to eliminate distortions of the law that create artificial obstacles for insolvent persons who may be subject to the main law.
In particular, as already noted, the proposed amendments are aimed at eliminating the heterogeneity of powers assigned to creditors in accordance with the basic law.
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