More Than 120000 Homeowners in Fear of Foreclosure

by Shelton on December 27th, 2014

filed under House Loan

Almost 120,000 homeowners who are unable to pay their house loans are in danger of foreclosure as of January 1, 2015.

The bill that was protecting the primary residence from foreclosure expires on December 31, 2014, leaving about 120,000 debtors in fear of having their homes auctioned off.

The Greek government has received pressure from the troika of international creditors to withdraw the bill that was protecting the primary residence of those who fail to pay their house loan. Even though the Ministry of Development and Competitiveness had promised to protect the primary residence, the latest political developments have put the issue on the back burner.

Greeces creditors are not backing down on the issue. The previous development Minister Nikos Dendias had taken measures for bad business loans, but not on bad house loans. The new minister, Costas Skrekas, has not acted on the issue, despite promising to propose an amendment to help those unable to service their house loans.

The four major Greek banks state that they wont proceed to foreclosures of primary residences. However, they say that homes worth more than 300,000 euros or excessively big houses may be foreclosed.

The government insists that there wont be any foreclosures of primary residencies because according to law 4224/2013, banks have to cooperate with noncompliant debtors and come to settlements based on their income and living expenses. The new agreements will have a longer repayment period, therefore lower monthly payments.

Also, the development ministry says that the 2010 Katseli law, that protects the primary residence for a period of time, is still in effect to aid those who really cant afford their house loans.