The Single-Member Court of Appeals of Athens issued Decision No. 276/2024, ordering the suspension of the enforcement process and the auction of two horizontal properties.
The court found probable cause regarding the validity of the appeal and the objection filed by the debtor, particularly concerning an objection based on procedural irregularities that had occurred during the enforcement process. Specifically, the managing company initiating the enforcement failed to serve the debtor with original or certified copies of the documents proving the succession from the bank to the special purpose vehicle (fund) and the subsequent delegation of management to the servicing company (servicer).
The enforcement process, being a severe intervention in the constitutionally protected right of property ownership, is governed by strict and formal rules. Consequently, procedural irregularities in this process justify the nullification of enforcement actions.
Regarding the element of risk, it was particularly significant that the debtor had repeatedly attempted to negotiate a settlement of the debt with the managing company. At the time of both the hearing of the objection at the first instance and the hearing of the suspension request before the Court of Appeals, the managing company had yet to respond to the debtor's settlement request.
Thus, identifying potential irregularities in the process, as well as the debtor's stance toward their creditor, are crucial factors in the debtor's defense against enforcement actions.
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