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

“The problem is huge” says director

Huge problemEVIDENTLY tens of thousands of mortgaged properties have been sold to unsuspecting buyers by property developers, some of whom are currently unable to service their loans.

In efforts to identify the size of the problem the Phileleftheros has been trying to obtain information from the banks and the Department of Lands and Surveys, but without success.

While the banks have records relating to each of their customers, there is no centralised database and an official from one of the banks said that the bank would “make arrangements to have this information in the near future.”

The Director of the Department of Lands and Surveys, Andreas Sokratous, said that no-one knows exactly how many of these double-mortgage cases there are, but it is in the tens of thousands.

The director noted that while some of the double-mortgaged properties are burdened with other encumbrances, such as memos for unpaid taxes, there are many cases where contracts of sale have not been deposited at the Land Registries for Specific Performance.

“The problem is huge” said Mr Sokratous and added that it is unclear what should be done in cases where a purchaser is repaying their bank loan, but their developer is not repaying his loans.