Cyprus Law | Scheme to Save Mortgage Defaulters Fails


Cyprus Law – Scheme to Save Mortgage Defaulters Fails

This last week has seen the ROC Government, decide to initially bring the idea of buying the properties of citizens where they had defaulted on the mortgage, then rent them to the defaulters and then at a later stage allow them to resume the mortgage and continue to buy them. This idea was to go to Parliament for discussion and one presumes a vote.

That has been put on the back burner now and I think it will stay there. Too many banks to keep sweet?

Of course the reason for the default is patently obvious, very bad decisions by the Banks and lending institutions when allowing the borrowers to take on debts far in excess of what they could afford and no real vetting of the borrowers ongoing ability to continue to service their debts. Oh dear, in a country where it is who you know and not how much you earn that decides how much you can borrow, this development became inevitable.

So if the ROC Government is truly serious about wanting to help those affected by this situation why don’t they buy the properties at a very reduced sum thus punishing the banks who will at least get something instead of the ‘nothing’ they are receiving now and allow the former mortgagees to become tenants. Forget the idea of allowing the mortgage to continue at some future dates since the former mortgagees have already proved they are bad risks. If the mortgagees decide to buy elsewhere in the future and can get a mortgage, then they will be free to leave and free up the Governments housing stock for another renter.

Thus council or social housing will be born in the ROC.

Very nice for the citizens of ROC but what about the thousands of innocent ex pats and even some ROC citizens who bought and paid for their homes/retirement homes/holiday homes, in full and because of the negligence of their lawyer, the dishonesty of the their vendor, and collusion of the Banks, find they too have a mortgage on their property that they were not made aware of and were not party too. How does this help them? How, when we are entering the 21st century, can the ROC allow this and call fraud a civil crime? We read that there are still in the region of 130 000 deeds not issued for this reason or the intransigence of the Land Registry Office. What about these people?

Of course we all know that the figures for the same crime in north Cyprus are fewer but percentage wise when you consider it against the sales figures on both sides of the island, is it so different? Why should those defrauded by the Advocates/Vendors have to pay to chase their rights through the Civil courts when the Police should be arresting these villains and the Prosecution service doing their duty and prosecuting them to the fullest extent of the law. Fraud is a criminal offence everywhere in the world, so why does Cyprus feel they can treat it any other way?

Tomorrow, the 14th April, the Kulaksiz 5 start their main case in the Girne District court and are scheduled to continue it on the 15th and 16th. If it goes ahead, do we believe they will win? In my opinion it should be a “slam dunk “. So many other victims are awaiting the outcome, 1400 plus we are told. I just will not hold my breath, blue does not suit me.


Never give in never give up

Pauline Read

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