EU Property Solutions- Experts in all Spanish property issues

Your Foreign Mortgage: What Happens If You Dont Pay

If you don’t pay your foreign mortgage overseas it is likely to have the same consequences if you didn’t pay your mortgage in your home country. Many with mortgage debt in Europe seem to be under the illusion that not paying the mortgage will have no consequence to them. This is incorrect and the foreign lender can legally come after you.

Consquence If You’re In Negative Equity

EU Property Solutions regularly see borrowers with a mortgage greater than the house value stop paying and leave the keys with the lender. Many of these borrowers do not know they are in negative equity and are putting themselves in serious jeopardy as they outstanding debt can be aggressively pursued back in their home state.

If you don’t pay your mortgage arrears will mount on your account and following a period of greater than three months your lender can commence repossession proceedings. Many courts in Europe are inundated with repossession cases so the process can take some time.

Once repossessed your lender will then likely market the property. Many properties sold in possession are sold at a far reduced value often around 60% of open market value. This can increase losses for both the Bank and the borrower.

When the Bank sell the property, you will be left liable for any shortfall balance if the property was in negative equity and this can be collected by lenders in your home country. We have seen instances when lenders have appointed UK Solicitors / Collection Agents and placed a 2^nd charge on a borrower’s home.

Important Advice

It is essential not to ignore your lender and to liaise with them if you have any issues paying your mortgage, if not your home assets are at risk. Contact Professionals in regards to EU Property Services dealing with Property Debt! Settlements are achievable!!