Significant changes are coming in the weeks ahead regarding foreclosures and the protection of primary residences. The reforms aim to ensure that protection is targeted at those who genuinely need it, while also resolving long-standing pending cases. Specifically, starting September 1st, applications for the rescheduling of objections will begin to be submitted through the Electronic Objections Platform, which has already been activated for case access and display. Once fully operational, thousands of pending objections against foreclosures and payment orders — some with hearing dates scheduled as far out as 2039 — will finally be unblocked.
In detail, a joint ministerial decision (JMD 42483/2026) issued by the Ministries of National Economy, Justice, and Digital Governance, which specifies the operation of the Electronic Platform for the Rescheduling of Objections (Government Gazette B’ 5016/11.8.2026), provides that the mandatory rescheduling process applies to objections against compulsory enforcement and payment orders that are pending at first instance, with hearing dates set from September 17, 2027 onwards. Cases with hearing dates before that date will proceed as normal, with no rescheduling application required.
The decision sets a specific timeline based on when each objection’s hearing date has been scheduled:
- September 2026: for hearings scheduled from 17/9/2027 to 31/12/2029
- October 2026: for hearings scheduled in 2030–2032
- November 2026: for hearings scheduled in 2033–2035
- December 2026: for hearings scheduled in 2036–2039
It is important to note that anyone who fails to submit an application on time will lose their objection, as it will be deemed “as if never filed” — meaning it will be treated as though it was never submitted, clearing the way for compulsory enforcement to continue without the obstacle of the pending objection.
According to data presented at the Ministry of Justice (9/6/2026), a total of 36,500 such cases are currently pending — 33,000 of them at the Athens Court of First Instance and the rest at courts in Thessaloniki, Piraeus, Ioannina, Messolonghi, Chania, and Corinth. In many cases, hearing dates had been set as late as 2039, effectively holding both creditors and debtors hostage to an indefinitely stalled legal process.
Secondary real estate, the Katseli Law, and out-of-court settlement
Just months after a Supreme Court ruling sided with borrowers under the Katseli Law — establishing that interest should be calculated on the monthly installment rather than on the principal — it is now time to accelerate the liquidation of thousands of properties belonging to Katseli Law debtors that constitute secondary real estate assets (such as vacation homes, plots of land, etc.). These properties are not protected under the relevant law and, based on court rulings, should have already been liquidated to satisfy creditors’ claims.
In other words, these secondary real estate assets should have been sold off long ago, but in practice this never happened. The total value of these properties — estimated at around 10,000 in number — is approximately €300 million. According to market sources, many of these properties were generating rental income for their owners at the same time that their primary residence was under legal protection.
It is worth recalling that a provision in Law 5259/2025 (Article 175) introduced time limits on the liquidation of assets belonging to Katseli Law debtors, simplified the relevant procedures, and provided additional financial incentives for appointed liquidators.
Furthermore, from September 21, 2026, the issue of secondary real estate will be incorporated into the out-of-court debt settlement mechanism, as a formal distinction between the primary residence and all other real estate assets will be institutionalized. This fundamentally changes the logic of debt restructuring arrangements: debtors will be able to decouple their primary home from their remaining real estate holdings, settling the debt attributed to the primary residence with a lower monthly installment, while other properties (vacation homes, plots of land, etc.) will be directed to auction to satisfy creditors.
A practical example
For example, a debtor with €400,000 in debt and real estate assets worth €300,000 — of which €200,000 relates to their primary residence and the remaining €100,000 to other properties — can restructure the €200,000 debt linked to their home at a lower monthly installment, while the remaining properties are directed to an online auction within 40 to 60 days of the bailiff’s report being drawn up. The new framework dramatically limits available legal remedies: standard objections under regular compulsory enforcement proceedings are not permitted, and once the auction is completed, neither the debtor nor the creditors who have signed the restructuring agreement retain the right to file an objection.
