Loans holders line up to meet payments for “red loans” by Dec. 31

Harsher criteria for the protection of home loans by January 1

Mortgage holders are in a state of agony while rushing to meet payments of non-performing loans by December 31 before harsher terms are imposed.

Huge lines outside the County Court with 150 citizens per day submitting documents for entry into the Katseli Law of 2010 that protects primary residences from foreclosures for a period of time and is still in effect.

A sense of agony is heightened by the fact that the government is keeping its cards closed regarding the future and there is speculation whether they will go to distress funds. Meanwhile banks are continuing to send letters to loans holders inviting them to enter into a debt settlement.

Greek Ethnos newspaper reports that 1 mln mortgage holders are to receive such notices.

The door has opened to vulture funds for business loans, and there is speculation that this may pave the way for other forms of loans to enter distress fund by February 15.