Debtor households application platform launched

The Greek authorities announced the opening of an electronic application platform for over-indebted households to avoid an auction for the sale of the first home of low-income families.

Yesterday, the platform of the Special Secretariat for Private Debt (Ειδικής Γραμματείας Ιδιωτικού Χρέους) was opened, where vulnerable households wishing to protect their first home can apply for membership in the Agency for the Acquisition and Re-registration of Real Estate

Real estate auctions have been held since mid-June, despite the fact that banks avoid the liquidation (sale) of low-value real estate, which is mainly the first home for individuals. The expected increase in the number of auctions since September this year may lead to a decrease in the value of real estate in general.

The protection of the first home through the Real Estate Rental Agency, which, by all estimates, will start operating at the end of the first quarter of 2022, will be accompanied by a special subsidy program from the state. Those who are deemed vulnerable on the basis of their financial situation will be eligible for the grant and will declare this on the platform of the Special Secretariat for Private Debt.

By submitting an application, provided that their property and financial situation confirm their classification as “vulnerable” (have-nots), households will receive a certificate on the basis of which they can join the program of subsidizing monthly payments from the state.

It is expected that in the near future the program will be coordinated with banks and institutions. Bids may be open-ended, but not at the last minute before the property is put up for auction. According to banking institutions, applications for joining the platform will not be accepted 60 days after the date of the foreclosure or the publication of the decision on declaring the vulnerable debtor bankrupt in the electronic register of solvency.

The monthly payment that the borrower will pay in the interim depends on the commercial value of the property. Accordingly, the state allowance will range from 70 to 210 euros, depending on the financial situation of the household. Its provision will presuppose, on the one hand, that a particular household has been characterized as vulnerable, and on the other hand, that it will obligatorily transfer the property to the balance sheet of the “institution” that vouched for it.

Otherwise, the first housing will not be protected and will go under the hammer: either as a result of coercive measures by the bank, or as a result of legal bankruptcy.

The banks’ proposal stipulates that in the event that the debtor fails to make at least one payment, all subsidies must be returned. In addition, the debtor will lose the right to join the institution and defend his first place of residence.

If you have any questions, consult an accountant or lawyer.





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