The Greek Supreme Court on Thursday ruled that servicers based in Greece have the right to participate in court actions and carry residential auctions under their brand name and not as representatives of funds.
The decision was issued in an unprecedented speed for Greece’s justice, in just two weeks after the prosecutor’s proposal. According to media information, 56 judges voted in favor and only 9 against it.
The servicers will be able to carry out acts of execution as beneficial parties on behalf of the funds. Servicers are managing portfolios of non-performing loans in the country worth 45 billion euros..
At risk are 700,000 properties with 50% of them estimated to be residents.
Within three years it is estimated that around 150,000 houses will be auctioned electronically at a price below their value.
On the other hand, the funds have “bought” them through non-transparent procedures through the red loans, at prices close to 10% of the value of these loans, media report.
Hours after the decision, all opposition parties, lawyers and borrowers expressed sharp criticism to the conservative government and the Supreme Court.
