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

Ban the sale of mortgaged property

Poll results

Ban the sale of mortgaged property - poll results

A RECENT on-line mini-poll conducted by this magazine revealed that more than 90% of our readers who voted want the Cyprus Government to ban the sale of mortgaged property.

Property buyers in Cyprus are continually being deceived into buying property built on mortgaged land and may be left at the mercy of the banks if the mortgagor (the person who borrowed the money) defaults.

All of these ‘scams’ are permitted under the Island’s antiquated property laws. And there is no way a property buyer can force a developer or landowner to pay off their mortgage. There may be recourse through the courts, but this could take many, many years.

The banks

MANY buyers have been granted mortgages to buy homes by the bank that loaned the developer or the landowner the money in the first place. This is a win-win situation for the banks!

In July last year a senior banking source told the Cyprus Mail “We have been prudent in our lending” – I think that was something of an understatement!

Furthermore, the banks appear to be under no legal or moral obligation to advise possible mortgagors of existing loans on property they are buying. And banks refuse to provide details of any existing loans on properties bought by those to whom they have granted mortgages. (However, I am certain that if a buyer offered to repay a defaulting developer’s or landowner’s loan that the bank would be more forthcoming with this information).

(A number of buyers who have discovered that their property has been built on mortgaged land, have approached various banks offering to repay the developer’s/landowner’s mortgage. But the banks have refused their generous offers telling them that they need the approval of the mortgagor.)

Once again, their lack of transparency and refusal to divulge this vital information seems to be permitted under the Island’s antiquated laws.