The Cabinet on Wednesday decided to table a legislative package suspending property foreclosures until October 2023.
Finance Minister Makis Keravnos said the measure would buy the government some time to ensure a better solution to the issue.
The government is expected to brief the House of Representatives today on its proposal, which also includes the creation of a special court for the adjudication of non-performing loans, Keravnos said. It is believed that this will facilitate appeals against a foreclosure procedure giving a protection net for vulnerable borrowers who have their main residence as collateral.
The proposals will be tabled ahead of tomorrow’s plenary session, during which a bill will be put to the vote giving borrowers the right to appeal to the Court to secure an order to suspend the foreclosure process.
“The government’s intention is to table a comprehensive package to address the issue of non-performing loans and foreclosures,” Keravnos noted after the Cabinet meeting.
According to Investopedia, foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of the mortgaged property and selling it.
Typically, default is triggered when a borrower misses a specific number of monthly payments, but it can also happen when the borrower fails to meet other terms in the mortgage document.
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