It is a fact that lately the first home is no longer protected and auctions have entered our lives for good.
The threat of losing our property is more visible and more real than ever.
The procedures to «put a house up for auction» have been simplified and accelerated with the legislation and the amendments to the enforcement procedure of the Civil Procedure Code to strengthen creditors against debtors.
These modifications have been underway for about three years. The first and most significant loss to debtors was the abolition of the possibility of applying for a stay of execution at the start of enforcement. In practice, it meant that when the debtor received notice that the seizure of his property was about to begin, he could go to court and ask for a stay until the appeal he had brought against the execution had been decided.
This possibility no longer exists. Borrowers' weapons are reduced and existing ones are weakened by the new laws and the electronic auction process.
On the other hand, the collection agencies and those who try to pressure borrowers to settle their debts with new loan agreements called arrangements, which are unprofitable for them, use the candy of the auction, threatening that this will happen the next day.
This is not the case, of course.
For a property to reach auction, even the bank or collection agency or fund must follow some mandatory steps.
First: the loan must be terminated.
This means that we have to take a ext. to be communicated to us by a bailiff. This letter will state the amount of our debt, that the loan is cancelled and that we will have to pay the full amount of the debt immediately.
In this letter, we can respond with our own out-of-court complaint and challenge the validity of the complaint, provided that this is done in a timely manner and within the time specified in our loan agreement to contest the termination or the amounts due.
Second: a Payment Order must be issued and served on us
Η payment order is an enforceable judgment and marks the start of the enforcement procedure. And when it is accompanied by a cheque for payment, it is the start of enforcement proceedings.
If we are served with a payment order and regardless of whether we want to settle our debt or not, we'll have to file an injunction. This is because if we miss the short 15-day deadline for the notice of default, we will have practically accepted as our minimum debt the one stated in the Payment Order in addition to interest, costs, lawyers' fees, etc.We will have no right in the future to dispute the debt, the terms of the loan agreement, its invalidity, the bank's misuse and many other things.
The second key point is that only then at that stage of the procedure can we now apply for a suspension. Therefore, if we do not bring a suspension then, we will not be able to bring a suspension at any other point in time.
We must, therefore, make the most of the minimum 15-day deadline given to us by law to exercise and exploit our few weapons and procedural rights.
Practically speaking and if we are talking about proceedings in the Athens courts, our appeal will be heard in 2027 so yes, we have to ensure that until then, we will have a stay of execution, not only to avoid the auction, but because that gives us an extra bargaining chip with our lender.
It is one thing for the lender to know that he cannot foreclose, until 2027 for example, and another to know that he can do so at any time.
Third: A seizure report with the property, its value and the date of the first auction is notified
When we reach this stage, then yes, we can say that the risk of losing our property is visible. And here too there are stops we can make, but with these stops we can only annul the specific auction and not the sale of our property in general. Essentially, if we achieve anything, it is to gain time.
From here on out, whatever we do is only about enforcement and correcting the process, which means the lender can come back again to put our house up for auction.
What to do: In general, in all steps we must consult a lawyer in good time to guide us and exercise the procedural remedies provided for in order to protect our property but also to gain negotiating time should we wish to do so.
Even if our lender proposes an arrangement and we are not familiar with the bank's terms, it is necessary to contact a lawyer to negotiate with our creditor or even to accompany us during the signing of the arrangement to read and explain it to us.
It must be made clear that it is neither shameful nor forbidden to withdraw from signing the arrangement if we have not fully understood its content or if the arrangement proposed to us is ultimately not viable for us.
The aim, when we sign a loan arrangement, is for it to be viable, that is, to be able to complete it so that we can pay off our debt. The tactical «adjustment to adjustment» only serves the creditors, as they increase the debt, lengthen the repayment period and perpetuate the debt..
So beware: Always sign if it is in our interest and not with the thought that it is something temporary, and in a year or two we see... No, we have to sign arrangements that we can serve to the end.
By Anastasia Miliou
ANASTASIA CHR. APPLE
I'M GOING TO BE A LAWYER.
Ave. 403 Mesogeion Avenue, Agia Paraskevi, Agia Paraskevi
Tel. 6945-028153, 213-0338950
e-mail: natmil@otenet.gr, info@legalaction.gr
www.legalaction.gr, fb: Anastasia Miliou
Author of the article:
Attorney at Law & Attorney-at-Law & Attorney-at-Law
Ave. 403 Mesogeion Street, Agia Paraskevi, Agia Paraskevi, Attica
Tel. 6945-028153, 213-0338950
e-mail: natmil@otenet.gr, info@legalaction.gr
www.legalaction.gr
