The Financial Ombudsman intervened to freeze 136 primary home foreclosure cases over the past two years, despite having no legal authority to suspend or cancel the procedures.
The Ombudsman stepped in for humanitarian reasons to help find mutually acceptable solutions between the involved parties.
Data obtained by Phileleftheros shows that requests to suspend auctions reached 437 last year, up from 230 in 2024. Out of these, 215 cases involved requests to freeze or cancel property foreclosures, compared to 110 requests in 2024.
Credit acquiring companies accounted for 89 per cent of the foreclosure suspension requests in 2025, representing 389 cases, while banking institutions accounted for 11 per cent, or 48 cases. In 2024, credit acquiring companies were linked to 195 requests, approximately 85 per cent, while banks were involved in 35.
The spike in requests last year followed the intensification of foreclosure procedures on mortgages and primary residences, driven by the transfer of large non-performing loan portfolios from banks to credit acquiring companies. Foreclosures accelerated in September 2024 when procedures restarted after the previous parliament temporarily suspended the legal framework through legislative interventions.
The Financial Disputes Ombudsman Body estimates that the number of borrowers seeking suspensions, cancellations, or alternative debt settlements will rise in the coming years. This is because a significant number of non-performing mortgages remain unresolved.
A new legislative framework came into effect on 1 June, strengthening the powers of the Financial Ombudsman. Approved by parliament last April, the new framework makes the Ombudsman’s decisions binding for amounts up to €20,000, though decisions can still be challenged in court.
The system enforces compliance through administrative fines and recourse to the District Court. Eligible borrowers can now lodge complaints with the body to verify their outstanding debt upon receiving Type “I” and “IA” notices, which also offer a window for settlement.
The enforcement system combines administrative and judicial tools to increase compliance. While administrative fines are expected to exert financial pressure on the involved parties, court orders make compliance a legal obligation. However, concerns remain regarding the right of creditors to appeal to the courts and challenge the core of the Ombudsman’s decisions.
Aside from the 437 foreclosure interventions handled outside her formal jurisdiction, the Ombudsman received 377 complaints last year, a 24.60 per cent decrease compared to 2024. The body issued 98 decisions for 98 complaints last year, down from 356 decisions out of 695 resolved complaints in 2024.
Out of the 98 decisions issued in 2025, 58 favored the consumer and 40 favored the financial firm. In 2024, 291 out of 356 decisions favored the consumer, while 65 favored the financial firm.
Financial firms accepted 35 of the 58 pro-consumer decisions in 2025. Of these, 24 were fully accepted, and 11 were partially accepted with a partial payment of the specified compensation. The total amount awarded to consumers reached €520,000 in 2025, compared to €21 million in 2024. Financial firms accepted to pay €287,476 of the awarded total in 2025, compared to €578,692 in 2024.