Greece has passed a law designed to protect the owner of low income families





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25.12.2013 01:15
Articles about real estate | Greece has passed a law designed to protect the owner of low income families Greek parliament passed a law aimed at protecting low-income families from selling their flats for the debts on mortgages. 152 voted for the bill deputy center-right New Democracy party and the center-left PASOK members of the government coalition . Against were 141 representatives of opposition parties and groups of independent deputies in the 300-seat unicameral parliament .

The law, which includes articles in respect of the first auction of property of debtors, made ​​under pressure from international lenders troika (EU, ECB and IMF ) . They demanded to revoke the 2009 ban on the sale at auction of the first housing mortgage debtors who crossed into the category of bad . Under the first housing understood apartment owner, who no longer has other real estate and who lives in it .

Prohibition as an interim measure has been introduced to protect the families affected by the austerity measures , but they have used enough and wealthy citizens who have the money to pay the loan. Validity prohibition of forced sale by auction , which has already been extended three times , expires on 31 December . In this regard, the government saw fit to partially resolve the auctions , while protecting families with low incomes .

Mortgages account for a large portion of non-performing loans of Greek banks , which because of the crisis jumped to record levels.

According to the central bank of Greece , is now almost 29% of mortgages are delinquent , compared with 14.9% in December 2011 .

According to the minister of development and competitiveness of Greece Costis Hatzidakis , through new legislation nine out of ten Greek debtors do not lose their apartments under certain conditions .

Sales of apartments worth less than € 200 thousand will not be allowed if the owning family has a total annual income of less than € 35 thousand before taxes , and all of its property , including bank deposits , does not exceed € 270 thousand These amounts are increased for families with three or more children.

If the annual income does not exceed € debtors 15 thousand , they will have to pay to pay off the mortgage 10 % of their monthly earnings, then their apartments and houses will be protected from forced sale . Families who earn between € 15 thousand to € 35 thousand per year , will have to make monthly payments on a mortgage loan in the amount of 10 % of the first € 15 million and 20 % of the remaining amount . Unemployed debtors generally will not pay the mortgage as long as begin to get paid again .
Content tags: Overseas property
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