The Financial Commissioner informs the interested entities in a note that it is illegal to activate the process of sale and sale of the main residence, pending objection submitted in the framework of the procedural provisions of the Estia Plan.
Pavlos Ioannou's note was issued following the decision of the District Court of Nicosia dated April 5, 2022, which deals with the issuance of an order annulling the auction sale process, as well as a decree of set aside and cancellation of a “IA” type notice sent by Company Exa.
“It is now becoming clear that it is not legal to initiate a process of sale and foreclosure of a main residence, a pending objection submitted under the procedural provisions of the Home Plan, when the conditions that led to the Decision under discussion are met,” the note from the Financial Commissioner reads./p>
It should be noted that before the issuance of the Decision under discussion, the interested borrowers, submitted a complaint form to the Financial Commissioner, dated 28/3/2022, with a request for actions to be canceled scheduled for 06/04/2022, sale of the main their residence. Subsequently, the Office of the Financial Commissioner sent a letter to the credit company related to the above request, explaining the need to cancel the sale process. On March 31, 2022, the Credit Redemption Company informed by e-mail that there is an ongoing court process for the case.
“In other words, they rejected, in fact, the proposal of the Financial Commissioner to examine the possible satisfaction of the request of our above-mentioned interested citizens for cancellation of the planned sale”, says Mr. Ioannou.
The Financial Commissioner describes the Court's ruling as” absolutely fair and reasonable and at the same time grounded in its legal and practical consequences “.
The decision, it is stated, “is based mainly on the fact that the sale process and the determination of the sale date took place at a time when a decision of the Competent Authorities was pending, on the borrower's objection, to reject a request to join the ESTIA Plan.”
< p class = "text-paragraph">The decision states that the Estia plan, “provides that the participating (ie credit repurchase company) that will sign the relevant memorandum of understanding with the government will not take legal action for credit facilities secured by a Main Residence pending before of the application for inclusion in the Estia plan to be considered or it will suspend any legal measures in progress concerning credit facilities included in the plan as long as the debtors comply with their obligations arising from the plan. '”.
“Since the defendant has signed the memorandum of understanding, I consider that she is bound by the instructions of the Financial Commissioner in relation to the management of the” ESTIA “project and must comply with his instructions if she has agreed to be paid, in case the borrower approves the project. “State sponsorship”, the decision states.
At the same time, Mr. Ioannou notes that ESTIA project, but at the time of the sale a decision on an objection was pending before the Objections Committee of the Plan, they may be illegal “.
It is also stated that sent notifications of type “I” and type “IA”, pending objection for non-inclusion in the ESTIA Plan, are premature and should be set aside.
The Financial Commissioner notes that it is necessary for the State to take care, so that the ESTIA Plan is fully completed. This presupposes the completion of the examination of objections for rejection in the ESTIA Plan, which are pending before the Competent Authorities with diligence and in a fair manner.
“In any case of determining the date of sale of a mortgage main residence in which the borrower concerned has submitted an objection to the rejection of his application for inclusion in the ESTIA Plan, pending the decision of the Competent Authorities, the Banks and the Repurchase of Credits, they should cancel them, pending the final outcome of the objection and therefore the full completion of the procedures of the ESTIA Plan “, it is stated.
Finally, it invites the borrowers , in cases where the sale of their main residence is proceeding while a decision on their objection for non-inclusion in the ESTIA Plan is pending, to submit a specific complaint, following the legal procedures of the Office of the Financial Commissioner, which must be accompanied by certification that for main residence, that his application for inclusion in the ESTIA Plan was rejected, as well as a certification that a decision on of the objection.