Borrowers association concerned over impending auction of retiree’s home

The Cyprus Association for the Protection of Borrowers (Syprodat) this week said that a commercial bank is moving forward with the auction of a 72-year-old retiree’s primary residence, valued at €380,000, due to a debt of €64,000.

According to the association, the retiree, facing financial difficulties since 2017, is now at risk of losing their home due to unpaid instalments.

The situation caught the attention of the Association for the Protection of Borrowers (Syprodat), a prominent advocacy group, which is demanding the auction be halted.

Speaking to the Cyprus News Agency (CNA), Tzeni Papacharalambous, the director of Syprodat, expressed deep concern over the upcoming auction.

The advocacy group has taken a firm stand against the bank’s decision and is urging for a reconsideration of the action.

According to Papacharalambous, the retiree had diligently paid their instalments up until 2017, when economic hardships forced them to default on their loan.

Highlighting the retiree’s dire predicament, Papacharalambous revealed that the bank has given the retiree until Wednesday to come up with €20,000 to halt the auction, which is scheduled to take place within the week.

Moreover, the advocacy group questions the feasibility of such a substantial amount being raised in such a short span of time.

Furthermore, Syprodat noted that the bank’s action runs counter to the decisions made by both the Association of Credit Acquiring Companies and Management Companies and the Cyprus Banks Association.

These decisions, the Syprodat director noted, outlined a moratorium on property auctions for primary residences valued up to €350,000 until October 31, 2023.

In addition, Papacharalambous shed light on the retiree’s attempt to negotiate a restructuring of the debt, involving the retiree’s 33-year-old daughter as a co-debtor.

Unfortunately, she explained, this plea was rejected due to doubts about the sustainability of her income.

“Instead of accepting this proposed solution, they have decided to auction the house due to an owed sum of €64,000, just before the summer holidays, having notified her just this past Friday, and asking her to come up with €20,000 in two days to stop the auction,” Papacharalambous said.

“Where is a retired 72-year-old supposed to find €20,000 in two days,” she added, noting that there are only two business days between the day of the notification and the deadline.

Concluding her statement, Papacharalambous highlighted that Syprodat has informed all relevant authorities about the situation, urging them to take action to prevent the impending auction.

Finally, the advocacy group called for not only a temporary halt to the auction but also the exploration of alternative solutions that would enable the retiree in question to keep their home.