Eurobank Offers Mortgage Defaulters Settlement to Save Homes

(AP Photo/Thanassis Stavrakis, file)

ATHENS – Mortgage-holders in Greece who couldn’t afford to pay their note will be given a chance for a settlement by Eurobank, which said it will send letters to 35,000 clients with bad loans with a plan to save their homes from foreclosure.

They owe 2 billion euros ($2.22 billion) and the bank said it would be their last chance to pay up through a plan that also includes a partial subsidy from the state, set up during the recently-ended reign of the Radical Left SYRIZA after then-Premier Alexis Tsipras broke promises to let banks confiscate homes after swearing he wouldn’t.

Debtors have until the end of September to apply for a settlement. Theodoros Kalantonis, deputy CEO of the bank’s Trouble Assets Group, said the bank would accept all applications and require fewer supporting documents with the application.

The law, said Kalantonis “is a unique chance for those who really want a permanent solution for their loans,” to save homes.