Home Repossessions in Cyprus

The Cyprus Informer welcomes comments and input on its articles and in this case it caused our Editor some concern for the paper’s readers with investment properties and homes in Cyprus. 

“Cyprus Repossessions, with regard to an article [in your paper] ‘Government Will Have to Write Off Debts’, this will not happen! Banks in Cyprus have been told to collect by any means possible, any outstanding Loans. If you fall 2-3 months arrears on your Mortgage! the Bank can terminate your mortgage/loan, without Court action! Lawyers! Just a letter giving you 7 days to pay, then they add up to 10% on top of the original interest, say 15-16-17 % total, on the full amount of the original loan! If you own property overseas, they [the Cyprus Banks] will come after their losses through UK Courts. PS these are Facts!”

This scenario was far from what The Cyprus Informer had previously thought so the research staff were put to finding more about home repossessions in Cyprus.

Coincidentally Antonis Loizou & Associates Ltd, a respected professional firm of Chartered Surveyors which was set up in 1980, has published an article which gives advice to those with financial worries and repossessions in Cyprus.  The full article is here. http://www.aloizou.com.cy/documents/ChristmasTimeAlways.htm 

We feel great concern for the person who has made the above comments, and who has posted elsewhere on another Cyprus forums for advice, and we hope that by republishing the following, very small, but pertinent extracts that this will help others in the spirit and intention of Antonis Loizou & Associates Ltd in publishing the original article.

“Repossession procedure takes a very long time, something like 3-7 years(+). So even if the bank charges interest at 7% (delayed payments can reach up to 12% interest, but at the end banks will negotiate to around 7% as a settlement) one hopes that prices will improve or the market/business will be better at the year 2010-2011. So instead of selling out with “a loss” of 20%-30%, a 7% p.a. charge can be, in theory, affordable.”

“We know that the Banks will increase the pressure during the year 2010, threatening letters etc and for which foreign people in particular, take these threats particularly seriously and they are worried, causing them psychological and other distress. Surely we do not suggest to ignore them and think that the future will be lovely. But, do not panic. Locals do not pay particular attention to such letters, knowing the difficulties involved in a repossession and sale.”

We do not know what the situation is in Cyprus regarding regulation but our suggestion is to contact The Central Bank of Cyprus to see if there is any regulatory registration which tests the qualifications and competence of the firm or person. 

 If in doubt use a local independent lawyer who is listed by The Cyprus Bar Association.

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The Black Art of Buying Property in Cyprus™ ®
The Cyprus Informer™ ® ©
http://cyprusinformer.eu

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