The slippery slope of mortgage arrears
The most common issue we encounter at EU Property Solutions is borrowers who have fallen into mortgage arrears or are facing a negative equity issue on their foreign property.
On bad advice, many people hand back the keys or ignore the lenders, spiralling into a complicated and expensive legal process. Although many foreign banks are slow to react, sometimes even leaving it a decade to chase for the outstanding money, they will eventually do this with added interest.
Facing the fact your assets are at risk
The majority of foreign lenders are slow when it comes to debt recovery, but many are now turning to third parties in the UK to collect it for them. They go down the route of appointing UK-based solicitors, vulture funds and debt collectors who are extremely aggressive.
Although many people where mis-sold mortgages during the property boom period, it is almost impossible to prove, and you will be liable for the outstanding amount. The main asset that will become a risk is your home, and the third parties will take an aggressive stance to collect the debt.
They will initially engage with you through letters and calls. If this fails, they will then start proceedings via the courts, which can lead to additional legal fees, a CCJ on your records, or a second charge on your property, which in return makes it almost impossible to negotiate.
Finding the best solution
Although being chased in your home country can be scary, it is important to seek proper advice to deal with the situation before it becomes worse.
At EU Property Solutions, we have over a decade of experience dealing with foreign debt being chased in the UK. Our UK-based team will make a unique plan for your case and take over all communication on your behalf. The end goal is to ensure you get a settlement that will lift any risk to your assets.
Take the first step today by booking a free consultation with our team by calling us on 0330 124 1230 or emailing [email protected].
Yes, foreign debt can be collected in the UK using the Hague Convention, allowing creditors to enforce judgments and recover debts across borders, including through UK courts.
Foreign debts can be chased in the UK for many years. Even if a bank stops contacting you, they may sell the debt to third-party agencies, making it crucial to take action
Foreign debt is very serious, as creditors can pursue legal action, enforce judgments in your home country, claim assets, and even involve debt collection agencies, potentially impacting your credit rating and financial stability.
