New Insolvency Agency to Allow Debtors to Buy Back Foreclosed Homes Over 12 Years

Anew Greek insolvency agency allowing economically vulnerable debtors to settle their debts by leasing their foreclosed properties is expected to be implemented in 2025.

The new legal framework, named the Sale & Lease Back Organization (SLBO), will grant debtors the right to buy back their repossessed homes over 12 years.

However, debtors will forgo the right to participate in the program if they fail to pay installments for more than 3 months.

With the activation of the agency, private individuals, including small businesses that have been declared bankrupt or are undergoing foreclosure proceedings, with loans secured by their primary residence, will be able to join and save their property.

Once the agency begins operations, vulnerable debtors participating in the program will have a one-month deadline to submit their application for inclusion. The application will be submitted through the agency’s online platform, and permission will be granted for an inspection of the property on behalf of the agency.

The inspection and property appraisal costs will be covered by the agency, provided no illegal constructions are found on the property, in which case the debtor will incur all relevant expenses.

The call to tender for selecting an investor to manage the Greek insolvency agency is in its final stage, and binding offers are expected to be submitted within the month.

The rent will be revised annually, while the repurchase price will be determined based on the property’s market value after 12 years.

Source: tovima.com