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Monday, June 1, 2020
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Flood of foreclosure letters

Cyprus foreclosure lettersTHE NUMBER of warning letters sent by banks warning borrowers they intend to foreclosure doubled in the second quarter of 2018, Phileleftheros reported on Monday.

It said banks sent a total of 1496 letters in the second quarter of 2018 compared to 792 in the first quarter and that the number of letters was also is the highest since 2015 when the legislation came into force.

Of the 6,869 properties for which foreclosure notifications have been sent since the third quarter of 2015, only 214 or 3.11% of properties had been sold in the first auction by June 2018.

No primary homes were sold in the second quarter, but 13 houses/apartments ready or under construction, two commercial properties and eight plots of land were sold.

Central Bank figures show that in the second quarter 317 warning letters concerned commercial properties – compared to 143 in the first quarter.

A total of 41 letters were sent for primary homes/apartments, up from 35, and 196 (up from 121) for plots of land. Furthermore 769 letters were sent for rural plots (up from 422) – and a letter was also sent for a hotel.

1 COMMENT

  1. It seems the Banks are repossessing the least valuable capital? It would be interesting to know why they have mostly opted to reposses the least desirable plots? Perhaps they are pussyfooting about trying to protect the market and at the same time still attempting to attribute overvalued pricing on the property assets they hold to make the broken balance sheet look better?

    I understand they are up against the overvalued Primary Residence protection scam (Which does not apply in other EU countries, if you default on your repayments your “home is at risk”,) but surely a Bank would be better placed in recovery to sell more desirable property ? It seems that unless the primary residence protection is removed they will end up with a cache of not very desirable lots to auction, at not very desirable prices maybe this explains the very low turnaround figure of 3.11% auction sales ?

    Sooner or later the “letting the economy down gently” approach has to backfire as over time as the Bank losses increase. (only time will tell)

Comments are closed.

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