Greece is set to overhaul its foreclosure and forced property auction system with a new draft bill that critics say could leave thousands of vulnerable homeowners exposed to immediate eviction and financial ruin. The proposed legislation, submitted to Parliament by the Ministry of Justice under the title “Interventions in the Code of Civil Procedure,” introduces sweeping changes to the country's legal framework for property enforcement.
At the heart of the bill is a significant shift in favor of creditors, lenders, and auction investors, aimed at accelerating and streamlining the process of seizing and selling properties from indebted owners. The bill removes key legal protections that previously shielded homeowners—especially those in precarious economic situations—and grants new powers to creditors, including the ability to evict debtors from their homes without delay and without the need for alternative housing arrangements.
One of the most striking changes involves amendments to Article 943 of Greece’s Civil Procedure Code, allowing for the immediate removal of occupants once a property is awarded to a new owner at auction. Debtors will no longer have extended timeframes or broad legal grounds to challenge the validity of the enforcement process. These changes are expected to fast-track evictions and limit the ability of homeowners to defend themselves against foreclosure.
The bill also changes Article 1001, allowing auctions to be carried out for properties in different regions across the country. This opens the door to large-scale asset liquidation and removes geographical constraints that previously added a layer of procedural complexity.
While the bill technically still permits homeowners to propose a voluntary sale of their property before an auction, such a move is only allowed with the consent of all creditors. Without unanimous agreement, the sale is rejected and the foreclosure proceeds. Moreover, although debtors retain the right to file legal objections or appeals, the timeframes for doing so have been drastically reduced, making it difficult to prepare a defense or secure meaningful legal recourse.
The financial implications are also stark. The cost of using the digital auction platform will fall on the successful bidder, which could depress sale prices. A lower final sale price translates into less money left over for the debtor after the debt is settled. In another blow to due process, any delay by the debtor in filing for a reassessment of their legal objection will result in the case being archived—effectively ending any legal challenge.
Critics warn that the bill could disproportionately impact low-income and vulnerable households, leading to a surge in evictions and deepening the country’s housing crisis. While the government argues that the changes are necessary to modernize and expedite enforcement procedures, human rights groups and legal experts have raised alarm about the potential for widespread displacement and social instability.
If passed, this legislation would mark – probably- one of the most aggressive shifts in Greece's foreclosure policy since the financial crisis, dismantling longstanding safeguards and paving the way for a new era in property enforcement—one where speed and efficiency come at the cost of basic housing security.
