Italy 
Portugal 
Spain 
142,000 mortgage loans to be transferred to servicers
Of the €32 bn NPEs to be securitized by the four systemic banks (Eurobank, Alpha Bank, Piraeus Bank and NBG), €13 bn are mortgage loans and of these, €10 bn have as a collateral the borrowers’ main residences. The €13 bn euros in mortgages stand for 185,000 loans, of which 142,000 have as collateral the borrowers’ main residence. The average balance of these loans is €70,000.
These loans along with their collateral will pass to the hands of the servicers: FPS, Intrum Hellas, new Cepal. NBG launches a €6 bn euro mortgage securitization and will hand over the servicing to one of the servicers of the Greek market.
Among these loans there are many non-performing mortgages that are currently protected from confiscation by the law. The borrowers protected by the old law (Katselis law) will continue to pay their monthly obligations as arranged. The cases that are still pending will be evaluated depending on the income and the assets of the borrower.
The loan cases that will end up in court will be repaid according to the court’s decision. The loans which qualify to be protected by the new main residence protection law will be settled on the terms of the court arrangement. If the borrowers fail to pay the instalments, the arrangement will be cancelled and the bank will have the right to auction the residence within a month.
Borrowers who do not qualify for protection of their homes will have to settle with the servicer, choosing one of the solutions that will be offered to them.
The alternatives that servicers are ready to offer are many, depending on the financial status of the borrower. They range from the sale of the property with a view to repaying the loan, renting it out to the borrower on the terms of ownership of the company, or a ‘classic’ – but in more attractive terms than the bank – arrangement of the loan.
Original Source: Euro2day
Translation/Adaptaion: Kiki Athanasiadis