Breath for Borrowers: Home auction-stop extended until end of 2013

Posted by in Economy

A breath for thousands of borrowers as Greek government decided to extend the auctions ban for one more year. With a legislative act the Ministry of Development suspends auctions for the so-called “first housing” until December 31, 2013. 

The legislative act prohibits banks from conducting auctions for unpaid mortgage loans if the home value does not exceed 300,000 euro and the loan  debt is not higher than 200,000 euro.

The current auction stop would be in force until December 31, 2012.

The extension for one more year gives a breath to thousands of borrowers in times when recession, unemployment and wages cuts have dried out the pockets of the average Greek household.

 According to earlier reports in the Greek media, the Troika wanted the lifting of auction stop as of 1.1.2013.

It looks as if Greece wanted to avoid a situation similar to Spain, when people committed suicide after being evicted from their homes.