Greece is set to roll out a new property protection mechanism this summer aimed at shielding vulnerable homeowners from losing their primary residences. The program, known as the Acquisition and Leaseback Agency, replaces the previous Katseli Law and offers a last-resort solution for those facing foreclosure.
The agency, operated by private investment funds including Bain Capital Credit and Fortress Credit, will purchase the homes of eligible borrowers. Former owners can then remain in their properties under a rental agreement and retain the right to repurchase once their financial situation stabilizes.
Until the agency becomes fully operational, an interim support program is in place. This scheme freezes foreclosure proceedings immediately and provides state subsidies of up to €210 per month toward mortgage payments.
Eligibility is limited to “vulnerable borrowers” with low income and modest assets. For example, a single-person household must earn no more than €7,000 annually, while families with children must earn below €21,000. The property’s value cannot exceed €120,000, with adjustments based on household size. Limits also apply to savings and other assets.
Authorities estimate that more than 20,000 households qualify, though only a small fraction have applied so far. Many remain unaware of the program or wait until foreclosure proceedings begin—a delay that can have devastating consequences.
This initiative represents a major step in preventing homelessness and providing financial breathing room for those at risk of losing their homes in Greece.
