Insider Business Increase in foreclosure warning letters

Increase in foreclosure warning letters

Letters sent out by banks in Cyprus to borrowers who fail to pay their installments are on the rise warning of the imminent foreclosure of properties, according to Central Bank of Cyprus data.

Specifically, letters sent out between January and June of 2019 concerned a total of 1,971 properties – mainly plots of land and agricultural fields.

The data which was recently sent to parliament also shows that out of the 1,971 notified properties, 266 have already been sold.

Concerns raised by political parties over foreclosures mainly focused on primary residences. However, out of the 266 foreclosures that took place within the first nine months of 2019, only three concerned primary homes.  And in the third quarter, only one primary residence was sold at an auction at the price of €154,000.

The second quarter of 2019 recorded the sale of two primary residences worth a total of €1.71 million. An increase in warning letters sent out in the third quarter of 2019 concerned mainly the ready/under-construction home/apartment division with the number totalling 216 compared to 137 in the second quarter.

Letters for the sale of land totalled 101 in the third quarter compared to 54 in the second. Letters for the sale of agricultural fields increased to 374 in the third quarter compared to 244 in the second quarter.

The data also shows that the outcome from properties sold by banks at a second auction during the first nine months of 2019 is poor. Specifically, a total of 21 apartments and plots were sold.

And banks, afterall, seem to buy more properties following unsuccessful auctions than the number of foreclosed ones put up for sale.

In the third quarter of 2019, banks bought a total of 196 properties compared to 171 in the second quarter and 219 in the first one. That is, they bought 1,119 properties and sold only 266.

The majority, that is 107, are plots and fields, 20 are houses/apartments, 20 are commercial properties, 6 are primary residences and 13 are other properties.


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