I refer to the articles on the foreclosures bill in the past week. There are two other main problems which have not been considered in this respect. The banks have mis-sold Swiss franc mortgages to thousands of people who asked for the lowest cost mortgages. The banks never told them about the very serious consequences of the fluctuating currencies effecting their mortgages. The banks also withheld information relating to other customers who took out such loans who are now finding that their mortgages have increased by up to 100%.
Secondly the banks gave loans to developers to build properties which were then sold to individuals. They then gave another loan for the same property to the buyer without clearing the first loan as is done in other countries.
Consequently, the individuals may be paying their loans but the developers cannot pay. Are the individuals now to lose their homes through no fault of their own?
In both these cases the banks are morally and legally responsible for these debts. Why should the public lose their homes in these situations? The government should make the banks take responsibility for their actions and the banks should make provisions for such debt.
A. Georgiou, Paphos for cyprus-mail.com