Entitlement from a forced sale

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avanapa
Posts: 33
Joined: 22 Nov 2007 21:19
Location: Scotland and Xylophagou

Entitlement from a forced sale

Post by avanapa »

Hi Nigel
Can you advise what happens in the case of a repossession in Cyprus when the outstanding developer debt that is claimed by the bank is relatively small. The existing debt on our project is 70,000 euros which I assume is divided between the 11 properties on our project. That works out at roughly 6,500e per plot. If they go ahead with repossession of my property and sold it at auction for say 100,000e, am I entitled to any of the excess from the sale? (93,500) Or is it the case that, by law, the excess can be kept by the bank? I ask as I only have 5 mortgage payments left to pay and till now have no arrears. Bearing in mind the latest debacle in the courts re the constitution, I am wondering if I should just accept our fate and accept that, sooner or later, the bank is going to take our house, pay no more and let them get on with it. I have tried in vain to get a waiver in the past by paying the developer debt on my plot but they refused unless all 11 purchasers paid the entire debt, which for various reasons was never going to happen. Given that the balance I owe on my mortgage is so low, I know it is most unlikely they will give me one now. Is it a false hope that I would be returned any money they gain from a sale in these circumstances.
Regards
Avanapa
Nigel Howarth
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Re: Entitlement from a forced sale

Post by Nigel Howarth »

Hi Avanapa

In theory if the bank repossesses the mortgaged land and all the properties built thereon it could sell the land and properties to recover the debt. If the proceeds of the sale exceed the debt, the purchasers affected would receive compensation.

I believe your best idea is to approach the bank and see if you can pay the outstanding debt that relates to the property you purchased in exchange for a 'waiver' whereby the bank removes any claim it has against your property. (Forget the developer - it's the bank you need to deal with).

As you bought using a loan I suggest you maintain your repayments. The bank should not take any action against you as you are a 'good' customer.

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Nigel Howarth
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avanapa
Posts: 33
Joined: 22 Nov 2007 21:19
Location: Scotland and Xylophagou

Re: Entitlement from a forced sale

Post by avanapa »

Hi Nigel, thanks for that. Can I clarify that it was the bank that had refused payment of the developer debt re my plot in the past. The developer has been bankrupt since 2010. I know a new "specific performance" law came into force a few years ago that would force the bank to take payment but I understood it was not retrospective for contracts before the law was amended, and was subject to the consent and agreement of the bank. I will try again but do not hold out much hope. After all the balance on my mortgage was far higher when they initially refused my offer.
Can I ask you also that, if I find a buyer and transfer the property to them (no deeds obviously) would that waiver automatically be passed onto the new purchaser. I would not want to put someone else into this nightmare position.

Regards
Avanapa
Nigel Howarth
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Re: Entitlement from a forced sale

Post by Nigel Howarth »

Hi Avanapa - yes the new law was introduced in 2011 - ‘The Sale of Immovable Property (Specific Performance)’, N81(I)/2011.

I guess you asked the Land Registry for a Title Search? This will show the loan amount agreed, not the outstanding balance and as you developer went bankrupt in 2010 I expect the bank will have added penalties and interest payments.

If you are able to get a waiver, whether it will be passed automatically to a new purchaser will depend on its wording. (I was sent a waiver a few days ago that specifically named the purchaser as its beneficiary).

Who is/was your developer & the name of your development?

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Nigel Howarth
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avanapa
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Joined: 22 Nov 2007 21:19
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Re: Entitlement from a forced sale

Post by avanapa »

SNK Venus Developers. Dinos 1 was the development.

Regards
avanapa
Pantheman
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Re: Entitlement from a forced sale

Post by Pantheman »

avanapa wrote: 04 Jun 2017 13:22 SNK Venus Developers. Dinos 1 was the development.

Regards
avanapa
SNK is with the liquidator CRI and has been for years. They tried to sell the land but there were no takers, who in their right mind would want to buy a ton of legal issues and try to remove those people.

It seems that the SNK situation has just frozen with CRI not really doing much about disposing of the stock. SNK had other lands not built on that they can sell.

I tried to get a waiver for a property, the bank initially said it would give me one if I provided various information that I did, then decided that no waivers would be given.

As the firm is in Liquidation, the matter is very complex, I doubt very much anything will happen re selling the land and property. Why don't you apply under the new law for exemption from the develop mortgage and let them slog it out? This is you next best course of action.

Regarding waiver, generally they go with the property not the person, but anything is possible, and many waivers are conditional that title deeds have been separated and ready for issue.

Good luck.
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avanapa
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Re: Entitlement from a forced sale

Post by avanapa »

Thanks for that Pan
We had applied for deeds via the "trapped buyers law" way back in Sept 15. After the law was passed in 2015 CRI actually advised us that the law as it now stood meant we were free from any obligation and we had no longer anything to worry about. Of course, in view of the recent court decisions going in favour of the banks, the whole mess has again reared its ugly head.
Pantheman
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Re: Entitlement from a forced sale

Post by Pantheman »

avanapa wrote: 06 Jun 2017 14:05 Thanks for that Pan
We had applied for deeds via the "trapped buyers law" way back in Sept 15. After the law was passed in 2015 CRI actually advised us that the law as it now stood meant we were free from any obligation and we had no longer anything to worry about. Of course, in view of the recent court decisions going in favour of the banks, the whole mess has again reared its ugly head.
Actually it's not, because the district courts cannot over turn any laws only the supreme constitutional court can do that. As we speak the attorney general was in a 3 hr meeting discussing this very point on how to over come it.

http://www.sigmalive.com/news/local/435 ... remvasi-ge

Its in Greek, but Google can translate. The will be another meeting / ideas in a few days with a follow up meeting. Things are happening in the back ground hopefully for the benefit of those affected.

All the best
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FSB Properties Ltd
Registered and Licensed Real Estate Company. Reg. No. 1145, Lic. No. 572/E
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