Foreclosures: The moves of NPL servicers after the Greek government’s “no”.
Red loan management companies are looking for ways to break out of the impasse in the execution of foreclosure auctions, after the government's refusal to resolve the issue by interpreting the existing law.
A decision of the Supreme Court does not allow servicers to represent funds in court for the recovery of overdue debts. In many cases now, borrowers' attorneys use it to stay foreclosures, gaining time for their clients.
But at the same time, there are 10 other decisions that say exactly the opposite. In fact, two of them have been issued by the same circuit of the Supreme Court that made the only decision against the funds.
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In this context, banks and servicers asked the government to interpret the legislation it passed, in order to clarify the issue and to know how to proceed.
Finally, although according to market sources, the interpretive provision was ready, the finance ministry backed down, fearing the political cost. In fact, the same sources claimed that after this move by the leadership of the ministry, "habitual non-payers are actually encouraged to continue withholding payments…"
At the Supreme Court
According to information, companies for which decisions have been issued, will request a meeting with the president and the prosecutor of the Supreme Court, in order to convince them to immediately send the case to the Plenary Session of the Supreme Court. There, whatever is decided can not disputed.
However, because this specific process is time-consuming, there is a thought for administrators to request an extension of a few months to achieve the goals of their business plans.
This is because if the auctions are frozen for a long time, even until the...