Rising concern over first home foreclosures in Cyprus

The increase in first home repossessions in Cyprus has raised concerns among politicians, as highlighted during a recent TV discussion. According to MP Stavros Papadouris, there has been a rise in repossession cases, particularly for homes valued under €350,000. Although the number of homes sold at auction is not high, the issue lies in the recovery of properties by creditors after an unsuccessful first auction. The number of cases where an official repossession notice has been issued has reached 235.

MP Christos Pantelidis emphasized the need for a more balanced legal framework to protect vulnerable borrowers while ensuring responsible behavior from both banks and borrowers. Despite some legal improvements, challenges remain, especially related to delayed court decisions and insufficient support for borrowers. The discussion also pointed out inconsistencies in support plans, lengthy court procedures, and a lack of full use of financial mediation services. There is also a call for extending deadlines to support vulnerable borrowers who have not yet applied for aid.