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More and more pressure on borrowers

May 14, 2019 at 9:13am
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More and more bank letters warning of forced sales have been sent out to first home borrowers with delayed instalments over recent months, according to Central Bank of Cyprus data.

Specifically, data for the fourth quarter of 2018 shows that banks sent out 61 notice letters to mortgage debtors informing them of the intention to sell real estate worth a total of €30.2 million which is collateral for loans taken.

In comparison, letters for the sale of 28 first homes worth €18.4 million were sent out in the previous quarter.

However, despite these letters from banks concerning first homes going under the hammer, none has been sold either in a first or second auction.

For 32 properties worth €14.8 million which are the primary residences of borrowers, a sale date is scheduled through the first auction. In the previous quarter, 25 first-sale auctions were scheduled.

Overall, banks in the fourth quarter of 2018 have sent out 887 letters of sale of real estate worth €219.4 million, compared to 863 letters in the previous quarter.

It appears that despite last July’s strengthening of the legal framework regarding  non-performing loans, the number of scheduled auctions was reduced over the last three months of 2018.

Specifically, the sale of 525 properties worth € 150.6 million was set to take place during the first part of an auction.

In addition to 32 primary residences, banks plan to sell 118 houses or apartments under construction worth €31.2 million, 72 commercial properties worth €38.8 million, 42 plots worth €8.9 million, 257 plots worth €56.1 million, and another form of property worth €657 thousand.

In the last quarter of 2018, 86 properties worth €6.9 million were auctioned, of which 72 were sold in the first auction and 14  in the second. Their selling price was €5.1 million.

 

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Real estate auctions made easier with new legislative framework