The discussion of foreclosure laws is scheduled to take place in parliament this week. This marks a significant development in property foreclosure regulations, with two government bills aimed at strengthening the legal framework set to be debated.
The aim is to bring these proposed laws to the Plenary session scheduled for this upcoming Friday, the last session before the Christmas break for Parliament.
The current suspension of foreclosures for primary residences valued at €350,000 is set to expire by the end of this month.
To avoid extending the freeze on foreclosures, there's a need to bolster the legal structure. The focus appears to be on the draft law concerning Special Jurisdiction, also known as the Foreclosures Court. This will be discussed during a joint session of the Parliamentary Committees on Finance and Legal Matters later this morning.
Amendments are anticipated due to reservations expressed by AKEL, the Green Party, and the governing parties.
Today's agenda also involves concluding the discussion on a bill that aims to enhance the authority of the Financial Commissioner. Yesterday, the government coalition parties – DIPA, DIKO, and EDEK – submitted two legislative proposals to the Plenary. These proposals aim to reinforce the rights of borrowers dealing with auction-related matters and non-performing loans secured by primary residences when addressing the Financial Commissioner.
The specific proposals, crafted by the Ministry of Finance, seek to strengthen the bill regarding the expansion of the Commissioner’s powers.
In particular, the legislation supported by MPs Christiana Erotokritou (DISY), Elias Myrianthous (EDEK), and Alekos Tryfonides (DIPA) includes an amendment to the Law on the Transfer and Mortgage of Immovables, safeguarding the rights of mortgage debtors of primary residences.
The second legislative proposal extends the powers of the Financial Commissioner for out-of-court dispute resolution within 45 days between mortgage lenders and debtors concerning foreclosures of primary residences valued up to €350,000.
It's specified that the right to appeal to the Financial Commissioner is granted to all mortgage debtors of existing non-performing loans valued at up to €350,000.
However, mortgage debtors of new non-performing loans who fail to cooperate with authorised institutions as outlined in the Central Bank’s Code are not eligible to appeal to the Commissioner as eligible debtors.
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