Financial ombudsman Pavlos Ioannou has intervened to suspend the foreclosure of the primary home of a woman who has her adult son with multiple sclerosis (MS) under her care.
The electronic auction of her house was scheduled for Friday.
But Ioannou, in collaboration with the Cyprus asset management company (Kedipes) arranged late on Thursday for the suspension of the foreclosure, as the borrower receives state benefits under the Guaranteed Minimum Income (GMI) and is responsible for the care of her 32-year-old son who has MS and also receives GMI government support.
Moreover, the borrower is in communication with Altamira real estate company “to find a mutually acceptable solution to repay her debts within the margin of six months as to avoid further measures,” Ioannou told the Cyprus News Agency.
The house, an inherited building of 1980, is built on a large expanse of land which far exceeds the area required by the Town Planning for the building.
Hence, Pavlou said “there is room for a rational approach to the issue, without resorting to a foreclosure,” but he also cited “serious humanitarian reasons,” as well as the coronavirus pandemic.
“I therefore considered, under the circumstances, that reasons of public interest, together with the above, called for the suspension of the foreclosure,” he said.
The ultimate purpose remains “to find a rational solution that serves the interests of both Kedipes and the borrowers, without the loss of the main residence”.
Pavlou called on those who have Non Performing Loans (NPLs) to utilise the existing legal system to protect their interests before the NPL is led to a foreclosure, forcing the sale of the asset used as the collateral for the loan.