The Supreme Court “opened” the way for 150,000 real estate auctions. The decision can be a tombstone for "ND"

The Plenum of the Supreme State Council of Greece (Supreme Court) on February 9, 2022 decided by an overwhelming majority that debt management companies (servicers) can hold auctions as beneficiaries on behalf of funds, paving the way for mass auctions of so-called “red” debtors, the number of which is estimated at 150,000.

The ruling came at a speed unprecedented in Greek justice, just two weeks after the prosecutor’s proposal. According to information mass media56 judges voted for him and only 9 – against.

The publication of the decision is expected within the next month, but what is surprising is why the Supreme Court made this decision with unprecedented speed (neither service providers, nor, of course, borrowers expected this), in fact, giving the houses of thousands of Greeks (mostly foreign) funds.

In short, the suspensions that delayed the legalization of servicers will be ended. Experts estimate that 150,000 properties are expected to be auctioned in the next three years, mostly by service organizations, half of which will be residential and the other half commercial. Of these auctions, 30% will be successful, ie. annually, about 15,000 residential and commercial properties will change hands.

It is noted that until now, funds have bought them through non-transparent procedures on red loans at prices close to 10% of the value of these loans. MASS MEDIA.

Hours after the decision was passed, all opposition parties, lawyers and borrowers issued strong criticism of the conservative government and the Supreme Court. However, the decision of the Supreme Court in the midst of the pre-election period, when the opposition and borrowers urgently demand the protection of first homes in accordance with the provisions of the Katseli law and the adoption of support measures for borrowers who may not be at risk of enforcement, but have been affected by interest rate increases, will bring only harm to the government from an electoral point of view.

Given that the vulnerability criteria are low, interest rates continue to rise further, inflation and price increases do not recede, and society is exhausted, going through one crisis after another from 2010 onwards, it is safe to say that hundreds of thousands of Greeks will lose their property.

Real estate, which is noted, in eight cases out of ten passes to foreigners. Many believe that the Supreme Court made this choice to … restore investment grade, which is considered the main condition indicating the proper functioning of the financial system. However, the “benefits” that could accrue from the Supreme Court’s decision are unlikely to outweigh the “costs”.

The housing issue – in addition to loan repayments, rents have also been rising for many months – and private debt management will be two more issues on which SYRIZA will be able to “beat” the government before the elections. Financial scandals, corruption and so on – this is something that many Greeks can forget about or even not worry about (everyone has long been accustomed to this). But the fact that their homes are taken away because of those they voted for will make them extremely angry. Real estate in Greece is that “holy cow” that is extremely dangerous to touch.

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