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By George Mouskides
Playing on the words of Shakespeare, a lot of fuss is being kicked up about an issue without substance.
The foreclosures legislation had been under discussion for a whole year which was nothing more than time wasted.
The legislation has been approved but we are certain that even those who voted for it do not know what they voted for.
It is a paradox and at the same time a sad observation, but it seems that not even the thousands of people burdened with non-performing loans (NPLs) have any idea what the law is all about.
WHO KNOWS?
It is important for these people to have a protection framework.
For the framework to be useful, though, the conditions as well as the degree to which you are protected must be crystal clear.
It is primarily for this reason that the Cyprus Association of Property Owners, (KSIA), has taken the initiative to organise a meeting on May 27, at 5pm at the KEVE offices in Nicosia, to discuss and inform owners facing non-performing loans problems.
Those holding NPLs must know that there are a lot of options available to them before a bank can go ahead with property foreclosures. To begin with, loan restructuring can be discussed with two bank bodies.
MEDIATORS
Based on certain criteria, the help of a mediator can also be employed.
People can also refer their case to an insolvency consultant to find out if a solution can be found based on a repayment plan envisaged by the insolvency legislation.
Even in the case that none of the above solutions works and the bank goes ahead with foreclosure procedures, the main residence is protected under some conditions. As a last resort, citizens can take the case to court, something which will buy them a lot of time.
Summing up the measures and tools people have at their disposal, (loan restructuring, Central Bank directives, etc) it would take at least 4-5 years before a property could be foreclosed. During this period, it might very well be that the financial status of owners change for the better and a better solution is found.
In conclusion, there has been a lot of noise generated around this issue, which is nothing more than noise. Reality is far different.
George Mouskides is General Manager, FOX Smart Estate Agency and Licensed Estate Agent, US Certified Public Accountant
