- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Foreclosure bill protects primary residences

home foreclosureTHE CABINET approved on Wednesday the amendments to the bill that were considered after pressure from all stakeholders, including political parties, property developers and home-owners, who wanted certain safeguards to be introduced, despite the Troika’s insistence of harsher measures to ensure than banks could recover assets or auction properties to pay down non-performing loans.

The primary home (ie. the owner is proven to be living there permanently) has been safeguarded only when the owner can prove lack of income or any other asset, thus ensuring low-income families do not lose the roof over their heads.

The new bill says that lenders can auction or sell mortgaged properties without the involvement of state services, even though the two parties may also resort to the Land Surveys Department, that so far had the exclusive right to sell or auction.

The bill’s provisions include:

Editors comments

Sparks are set to fly when the bill is discussed at a plenary session of parliament and put to a vote. Opposition parties are against the bill even though the release of next tranche of the island’s bailout is dependent on legislation being passed.

AKEL wants the bill to protect small business premises as well as primary residences and EDEK has dismissed the bill outright. DIKO warned that it will not support the bill if it considers the protection provided to primary residences to be inadequate.