AUCTIONS – FORECLOSURES

The opening of auctions is of great concern to debtors, as it is now increasingly likely that one of their assets, and most seriously, their main residence, will be auctioned off.

While in the previous years of the crisis, auctions of first homes were suspended with successive temporary laws, now, in combination with the changes in the legal framework, it is very possible to see one's house disappear from one day to the next. Indicative of the disruption was the climate that prevailed in the Magistrates' Courts on the days of the auctions, which were often prevented, while tensions were not uncommon.

In reality, the legislative amendments that constituted a memorandum measure simplify the seizure and auction procedures, with the result that no one is protected, unless they have been subject to Law 3869/2010, which, however, does not concern merchants. Therefore, if debtors active in the field of trade and business, as well as other natural persons whose debts are overdue, are not led to the out-of-court settlement of their debts or to the new bankruptcy procedure of Law 4738/2020 (second chance), they risk immediate loss of their assets, including their first residence.

However, in order for a property to be auctioned, actions must first have been taken by the creditor, which demonstrate his willingness to lead the situation to auction. These are, in order, the attempt to settle the debts by sending a letter to the debtor, the out-of-court termination of the loan, the issuance of a payment order and the seizure of the property. In many cases, Banks have issued an earlier payment order without having proceeded further, but this does not prevent them from being led to auction when they deem it appropriate and in their interest, without repeating the process from the beginning. Therefore, the service of a payment order by a bailiff should wake up the debtors and immediately consider the possibility of filing an objection against it, as there is a statutory deadline of 15 working days.

Our office, which has been dealing with debt cases of individuals, traders and companies for years and on a daily basis, provides effective solutions to those who are suddenly faced with the loss of their assets. The law of compulsory execution provides possibilities to prevent or improve the conditions of the auction with any possible opposition, suspension, correction of the program and other procedures, something that is not known to most of our fellow citizens, who in such cases are overwhelmed by anxiety and a feeling of hopelessness.

The handling of each incident differs from case to case and the assistance of a lawyer is necessary, as the above actions are judicial. Assigning the case to the law firm without delay provides our associates with the necessary time to properly prevent the auction or improve its conditions. Therefore, calmness and immediate mobilization are recommended for those who are faced with such threats.