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Government plans to offer homeowner rescue scheme

The House Human Rights Committee has heard that the Cyprus government is planning to offer a rescue scheme to help homeowners who are unable to maintain their mortgage repayments.

homeowner rescue schemeTHE GOVERNMENT is stepping in to help homeowners who are unable to repay their mortgage to commercial banks.

A Ministry of Finance official told the House Human Rights Committee that a plan is being drafted providing that homeowners who have mortgaged their first residence for up to €200,000 can apply to the government for relief in case they are unable to service their loan.

The government will purchase their home, but they will have the right to become tenants paying a nominal rent. They can also start repaying their loan under favourable terms over a long period.

Readers' comments

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  • Mike says:

    If anyone is left in any doubt about the futility of purchasing property in Cyprus under the current system then they must be either naive & gullible beyond comprehension or plain daft or perhaps money laundering. Would anyone with at least half a brain cell and a barge pole touch it?

  • andyp says:

    Look forward to it Nigel.

    I see from this mornings CM that they have published an article which highlights the issue of developer’s NPL’s on “sold” properties.

  • Denton Mackrell says:

    And what about all those buyers who have already paid in full and DO NOT HAVE, and possibly NEVER HAVE HAD, a mortgage of their own relating to the property? This latest proposed scheme looks like a ‘muddying the waters’ wheeze to deflect attention away from the monumental fraud of hidden developer mortgages which the banks and their liquidators (backed by the government) are determined to pretend never happened.

    andyp calls them ‘white collar terrorists’. Others have called them ‘sociopaths’, ‘a joint criminal enterprise’, ‘gangsters’ – the list goes on. Perhaps they are all of these.

  • Pippa says:

    @ Nigel,

    There seems to be yet more articles about property buyers who have mortgages, however is anything being discussed to help those who have paid in full for their properties but are unable to get title deeds because of developer NPL, this problem appears to have been neglected, other than the threat of repossession, or paying off the developers debts.

  • @andyp – I hope to be able to publish something in a few days that will help throw some light on the matter.

    I can assure you that the Troika are well aware of the problem of ‘hidden mortgages’ and their impact.

    There are still many property-related issues that the government needs to address.

  • Gavin Jones says:

    As the Cypriot government is broke, how on earth can they now purchase properties?

    Yet another hare-brained scheme that might be good as a sound bite to give the impression that it’s doing something but will never be implemented.

  • andyp says:

    I do not know which topic to post on but decided on the latest.

    I posted some weeks ago that there was a cunning plan afoot and indeed there have been several articles or rather non articles of late. All relate to bank apologise, must do better stories and pursuit and explanations of non performing loans. Not one article has mentioned the fact that many of these non performing loans in the property sector are secured on sold properties that buyers knew nothing about.

    A post by Steve R on a similar topic, and I stand to be corrected, confirms that he is now actually paying for his developer’s debt by way of a restructured mortgage. How wrong is that?

    I am without doubt a Cyprus cynic but all these articles suggest to me that the softening up process has begun and the reality is that the Cyprus government intend to do nothing about this fraud.

    It is about time Dr George, Pavlos and people like them, whom I believe are good and know the score, put in print some realities of the situation victims of this fraud find themselves in and either stand up and be counted or just join the rest of “the white collar terrorists” in my humble opinion.

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