Foreclosure cases in Turkey increase by 63 percent in 2023

The number of new files received by Turkish foreclosure offices increased by 62.7 percent between Jan. 1 and July 21 compared to the same period last year, reaching a total of 8.1 million new cases in 2023.

Monday July 24 2023 01:03 pm

Duvar English

While there were 5.008 million foreclosure files in Turkey between Jan. 1 and July 21 last year, this figure increased by 3.14 million and reached a total of 8.15 million new cases as of July 21, 2023.

The number of new files received by the foreclosure offices increased by 62.7 percent compared to the same period of the previous year, according to reporting of daily Sözcü. Currently, total number of files in the foreclosure offices is 21.8 million.

Main opposition Republican People’s Party (CHP) MP Ömer Fethi Gürer stated that there was a 226.65 percent increase in credit card expenditures and added, "There is a 187.94 percent increase in credit card expenditures from markets and shopping malls. Citizens consume not only what is in their pockets but also their future income in advance.”

Also, credit and credit card debts to banks reached 2.3 trillion Turkish liras ($85.3B), according to Gürer. The number of people who have not paid their personal loans and credit card debts was 3.8 million.

Recent data from the Banking Regulation and Supervision Agency (BDDK) reveals a noteworthy surge in credit card expenses among Turkish citizens following the election. Comparing the figures to those of July 14, it was found that individual credit card debts held by banks have risen by a staggering 138 billion liras since May 12, reaching 808 billion liras from the initial 670 billion liras.

Moreover, during the same time frame, consumer loans experienced a substantial uptick, reaching a total of 1.4 trillion liras with a notable increase of 50 billion liras.

After the foreclosure proceeding against the debtor is finalized, the creditor may request the seizure of movable and immovable property belonging to the debtor within one year. The creditors may also seize the debtor's salary or they may seize their receivable if they have one.

If the creditor cannot find vehicles and real estate registered on the debtor, or if the vehicles and real estate seized do not meet the receivables, the creditor can go to the debtor's residence address for actual seizure. If the debtor does not pay despite the creditor seizing their goods, the creditor may proceed with sale of debtor's goods.