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Foreclosure auction venues selected

A venue in each of the island’s districts has been selected where the auction of foreclosed properties will take place following a tender process by the Association of Cyprus Banks.

Auction venue: Atlantica Miramare Limassol

Atlantica Miramare Beach hotel

SEVEN months after the Cyprus parliament passed the five laws comprising the insolvency framework, venues have been selected in each of the island’s districts where the auction of foreclosed properties will be held:

Nicosia – The GSP (Pancyprian Gymnastic Association Stadium).

Limassol – The Atlantica Miramare Beach hotel.

Larnaca – The Sandy Beach Hotel.

Paphos – The hall of the Cineplex complex.

Paralimni – Premises managed by Group 4.

All the above facilities meet the minimum criteria specified by the Interior Ministry and it is expected that contracts will be signed after the ministry has ratified the Association’s decisions.

It is anticipated that auctions will be held on a daily basis and will get underway in mid-2016.

According to recent statements by president Anastasiades and senior banking officials, there will be no foreclosures of primary residences providing that their owners can prove that they are unable to meet their debt obligations as a result of the crisis.

In statements leaked to the media bankers have said that they will not seek to foreclose on primary residences, but will focus their attention on large debtors, commercial buildings, holiday homes and land.

Readers' comments

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  • Tearing my hair out says:

    “Premises managed by Group 4”

    Am I the only one who sees the irony of this?

  • Costas Apacket says:

    At these auctions I foresee shenanigans on an epic scale, where the NPL owner gets someone, a friend, relative or ‘associate’, to bid, (secretly on their behalf), for their property in an attempt to cut down the size of their outstanding NPL.

    Let’s hope that the auction starting price for all properties is set at least at the level of what NPL is owed on each property by the usual suspects, then the shenanigans will really kick off when they realise they have to fully repay their loan if they want to retain their property after all.

    Expect lots of Cyprus style shouting and fighting as the hill-billies come into town.

    (Editor’s comment: The new law affords debtors the right to bid to buy back their loan at a discount, after it has been deemed non-performing by the lender, but before it can be sold to third parties like investment funds.)

    Maybe Jethro and Ellie May will need to go for a swim in the Cee-ment pool after the auction finishes to cool down?

  • Mark says:

    Do these foreclosures apply to those buyers that have not yet received their title deeds, where the land on which their property is built is mortgaged by the developer and where their own mortgage is denominated in Swiss Francs? I am specifically referring to holiday homes purchased by foreign buyers.

    (Editor’s comment: NO! If any property, regardless of whether it is a holiday home, a permanent home, a house, an apartment is built on land that the developer had previously mortgaged, you should apply for the Title Deeds.

    There are some nefarious individuals spreading messages that you cannot get Title Deeds if you bought property using a loan. I can assure you this is UNTRUE and the currency of the loan makes no difference. Please refer to my article URGENT notice – trapped buyers.)

  • Steve R says:

    It will be very interesting to see who the companies are that have been chosen to tender. If a developer can not repay a loan taken out against a site of 8 houses where the residents have paid in full. Will they foreclose on the site and leave the builders primary residence intact. Can the government override the specific performances registered against these properties. All very interesting. I hope we will be kept up to date and some figures get released as to how much gets raised and who the winning bidders are.

    (Editor’s comment: The ‘trapped buyers’/’hidden mortgage’ law protects those who have purchased property from repossession by the developer’s bank (assuming they’ve applied for the Title Deeds.) Assuming those applications are successful, the bank will not foreclose on the site but move any debts to unsold properties or cancel them.

    The builder’s primary residence is in a different category to those of his company. It will be privately owned rather than an asset of his company and will not be subject to seizure unless he’s been really stupid and registered it in the name of his company.)

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.

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