Thousands of borrowers are being "pushed against the wall" by distressed debt funds, as repayment settlement proposals fall far short of their financial capabilities, resulting in their property being auctioned off without any effective intervention. Bankingnews (BN) brings to light the case of a borrower who described his personal ordeal to us.
Proposal to pay €25,000 to cancel the auction
He reveals that he received a proposal to pay €25,000 immediately to halt the foreclosure proceedings. It should be noted that this refers to the new legislative intervention by the New Democracy government, which was initially viewed as a positive development for borrowers because they would receive a settlement proposal before an auction; however, the legislator failed to define the content of such settlements. Thus, red loan managers have full freedom to seize the assets of borrowers with the state's... permission. Behind the servicer's proposal lies the ultimate goal: the borrower's property, which is valued at €480,000. The property is a two-story building, with the ground floor housing a business that generates monthly rent. The debt level, with the initial principal at €38,000, reaches €72,000 when including interest. The borrower countered with an offer of €5,000, which was rejected by the servicer, leading to the activation of the auction process. The borrower hopes for a court decision to stop the auction, presenting evidence showing that the property's value exceeds €480,000.
How he was rejected by the Katseli Law
The borrower’s adventure includes another chapter in his attempt to join the Katseli Law (debt relief framework). The application was rejected because he had purchased an electrical appliance from a retail chain worth a total of €1,000. This expenditure classified him as a wealthy borrower, despite the fact that he acquired it in installments. However, the interested party has appealed the original decision, which will be heard this coming November. Until then, however, the judicial ruling may be meaningless, as the auction process might already be completed.
Second job increased income but also taxes
To meet his increased financial needs, the borrower took on a second job, supplementing his original income to reach approximately €30,000. This higher income increased his income tax, which is paid through a settlement plan that in practice deprives him of the ability to repay the red loan debt. The borrower is trapped in a vicious cycle of financial obligations from which he cannot escape, ultimately leading to the loss of his property. The root of the evil is the institutionalization of the Fund's proposal to the borrower, which allows it to demand any amount it wishes without being linked to their actual financial capacity.
Nikos Theodoropoulos
ntheo@bankingnews.gr
www.bankingnews.gr
Σχόλια αναγνωστών