The first online auction of foreclosed real estate will take place on Wednesday morning with 16 properties, it was announced on Tuesday.
The first so called e-auction will include 14 plots belonging to Gordian Holdings Ltd. It will kick-off at 10am and will last two hours unless a one-hour extension is granted.
After that, if there are any bidders with a privileged status – the borrower or a first-degree relative – a second phase lasting 15 minutes will be launched involving the privileged bidders only.
The borrower is granted a privileged status in some cases and can buy back the property by matching the highest bid, as is the case in normal auctions.
Individuals and companies from anywhere in the world can register as bidders and take part in the auction without being physically present.
Chairman of the association for the protection of primary residence Stavros Papadouris said the e-auction was just another tool in the hands of the banks and investment funds but it did not take away any rights from the borrower apart from not being able to understand how the auction platform worked.
In contrast, interested buyers have the know-how and the way to start the process easily, he added.
Papadouris said the preferential status granted to the borrower in a normal auction related to their right or that of a first-degree relative to be present and buy the property at the value of the last bid.
Because there is no need of physical presence at an e-auction, a borrower must learn how to use the platform and five days before they must register and declare their legitimate interest to be able to exercise their right 15 minutes after the main auction ends, Papadouris said.
Asked why, if they have the money, borrowers don’t just go to the bank and offer to repay the loan, Papadouris said it was up to the lender to accept or try and get more money through an auction.