Repossession

The new bankruptcy code will provide for the main residences of bankrupt borrowers considered financially vulnerable to be transferred to a state entity and leased back to the original owners. This will replace the existing framework for the protection of debtors' main residence from repossession.

Property auctions by banks slowed down considerably in March, amid the government's negotiations with the country's creditors over the protection of borrowers' primary residences, while the same trend appears to have continued into April, ahead of the activation of the new platform for that purpose.

The state promises to subsidize the installments of financially challenged households for repaying their dues to their creditors by between 20 and 50 percent, whether they reach a settlement in court or via the out-of-court mechanisms to protect their main residence from repossession.

Greek banks will need to rid themselves of up to 5,000 properties over the next few years in order to clear their portfolios of real estate assets accumulated through auctions and repossessions.

The noose is tightening around state and bank debtors, as the tax administration is getting ready to carry out asset confiscations and repossessions from some 1.6 million taxpayers by the end of the year, while banks are gearing up for a wave of property auctions that will be allowed following notaries' decision to that end.

Government policy for subsidies and benefits for people on lower incomes, which in practice has no monitoring mechanisms checking declared incomes, is leading to an increase in tax evasion and failure to get resources to the people who need them most.

The New York Times published piece on the ordeal Greek homeowners experience during the process of foreclosures on their properties. The newspaper’s contributor, Niki Kitsantonis conveys the horrifying realities of ordinary people in an article entitled “Greek Homeowners Scramble as Repossession Looms: ‘It’s Like a Horror Movie”.

The state will cease repossessions of properties with a taxable, or "objective," value up to 300,000 euros on the condition that they are the debtors' main residences, Alternate Finance Minister Tryfon Alexiadis claimed on Thursday, although the country's creditors are certain to oppose the plan, while the ministry has issued guidelines to tax authorities regarding how to safeguard the state's

The coalition is searching for a way to prevent primary residences from being seized to pay off debts to the state, as confiscations have resumed following a hiatus, just before the start of SYRIZA's party congress on Thursday.

The union representing Greek notaries announced on Monday that its members would not be attending planned foreclosure hearings in Greek courts on Wednesday, amid growing public protests.

It also called on the government to clarify the legal situation regarding repossessions, especially relating to primary residences, "to ensure the legality and smoothness of the proceedings."