Can my primary residence be auctioned over debts?
Conditional — there's no general, automatic protection: a primary residence can be auctioned. Beware the outdated tools: the Katseli law (Law 3869/2010) is repealed (replaced by Law 4738/2020), and the primary-residence protection platform (Law 4605/2019) closed in 2020. What applies now is the extrajudicial mechanism (Law 4738/2020): a digital debt-restructuring platform (up to 240 instalments for banks, up to 420 for the State/EFKA) that freezes auctions while negotiation is ongoing and the settlement is honoured. A vulnerable debtor can access the sale-and-leaseback body. In short: no automatic shield — protection via restructuring or vulnerability status.
📋 The rules
- No automatic protection: a primary residence can be auctioned
- Katseli law (3869/2010): repealed
- Law 4605/2019 platform: closed in 2020
- Extrajudicial (Law 4738/2020): restructuring + auction freeze
- Vulnerable debtor: access to the sale-and-leaseback body
🔓 Exceptions
- Vulnerable (decision 71670/2021): income ≤€7,000/person, property ≤€120,000
- Without vulnerability: no leaseback route
- The freeze ends if the new settlement is defaulted
⚠️ Penalties & fines
There's no "fine" — the stake is the auction of the home. The extrajudicial mechanism acts as a practical shield: filing freezes auctions while negotiation is ongoing and the settlement is honoured, and a 2025 reform requires creditors to send a written restructuring proposal ≥3 months before an auction. A vulnerable debtor (income up to €7,000/person, property value up to €120,000) can access the sale-and-leaseback body, which buys the home and leases it back at subsidised rent (~€70–€210/month) with a repurchase option. Note: the upgraded body is not yet operational (expected autumn 2026). To protect yourself: enter the extrajudicial mechanism early and check whether you meet the vulnerability criteria.
📎 Official sources
- Law 4738/2020 — debt settlement / extrajudicial →
- Decision 71670/2021 — vulnerable debtor →
- KEYD — state debtor assistance →
❓ Frequently asked
Is a primary residence protected from auction?
There's no general, automatic protection. A primary residence can be auctioned over debts. Protection exists indirectly, through restructuring in the extrajudicial mechanism, which freezes auctions, or for those with vulnerable-debtor status.
Does the Katseli law still apply?
No. The Katseli law (Law 3869/2010) has been repealed and replaced by Law 4738/2020. The primary-residence protection platform of Law 4605/2019 has also closed since 2020. Pages presenting these as active are outdated.
What is the extrajudicial mechanism?
It's a digital platform for restructuring debts to banks, the State and EFKA, with up to 240 instalments for banks and up to 420 for the State. Filing freezes auctions while negotiation is ongoing and the agreed settlement is honoured.
Who is a vulnerable debtor?
It's a defined status with income and property criteria, e.g. income up to €7,000 for a single-person household and property value up to €120,000. It grants access to the sale-and-leaseback body, which buys the home and leases it back at a subsidised rent.
Is the leaseback body operational?
The upgraded sale-and-leaseback body is not yet operational; its launch is expected in autumn 2026. Its aim is to help thousands of vulnerable-debtor households by buying the property and leasing it back with a repurchase option.
🔎 Common searches
What people search to land here:
- “primary residence protection 2026”
- “primary residence auction”
- “katseli law repealed”
- “extrajudicial mechanism settlement”
- “vulnerable debtor criteria”
- “sale-and-leaseback body”