The Risk To Your Home and Assets
Failure to pay your foreign mortgage can carry the same repercussions as not paying any other debts. This means lenders can, and will, seek to repossess assets to recover their money.
This is not just limited to the country that the property is in. As a result of international laws, debts can be chased across borders, putting your UK home and assets at risk.
For many, owning a foreign property is a dream that usually means taking out a mortgage. However, if you are unable to pay your mortgage in a foreign country, the problem does not stay in that country. Many borrowers abandon properties under this belief, only to find themselves pursued in their home country. Recovery action can come in many forms; however, they all have one common trait – your assets at risk. This could be property, pensions or anything in between that you deem to be of precious value.
When are my assets at risk?
If you are in arrears, are worried about the end of your property’s interest-only term or are dealing with negative equity, you could find your UK assets at risk.
You are liable for the full amount if you have taken out a mortgage to pay for a foreign property. You may believe that you have been mis-sold this mortgage or that other factors mean you shouldn’t pay. Whilst this may be true, it will not be seen as an acceptable reason to stop paying your mortgage.
The amount of time that has passed also has little impact on the situation. For lots of borrowers, it may be years or even decades before they hear from their original lender. This does not mean they have forgotten. European lenders are sometimes slow but, in the end, always persistent.
How can I be pursued?
Whether you are pursued directly by the lender, by a third party or by a vulture fund, the tactics employed are always relatively similar. This can involve charges on your property, judgements and threatening letters.
You can read more about how you can be pursued in the UK here.
What is at risk?
If you are pursued for a foreign property debt, your assets become at risk. It is likely that the lender will come after your home in the UK first. Often a UK-based solicitor will be appointed to carry out the legal work. This will come in the form of legal judgements via threatening letters.
If you are on the receiving end, this is understandably a deeply concerning time for you, especially since the home bears so much importance to us all. As mentioned, it can take many years to begin recovery action however, once it begins, it can progress rapidly. If ignored, the situation will only become worse.
Any other assets that you own can be chased in the same way. This means that in a worst-case scenario, your pension, investments, inheritance and much more are in the eye-line of your lender. European lenders can be particularly persistent and aggressive, so nothing is off the table.
What can you do?
As with any debt situation, the best thing you can do is act urgently. At EU Property Solutions, our aim is always to prevent any of the legal actions mentioned above and, most of all, protect you and your assets. Our team works with legal experts in the UK and across Europe to achieve life-changing settlements.
Click the top of this page to find out more about a specific issue. If you can’t find what you are looking for or you’re worried about assets at risk in the UK, you can speak to us on 0330 124 1230 or email [email protected]
Are There Any Assets Not At Risk?
Some assets can be more difficult to repossess than others, but ultimately, there is very little that is out of reach for lenders. Physical assets such as property are easier to repossess and sell. This is why lenders generally will go for your home before other assets.
Can I Stop A Repossession?
Some people are under the impression that once repossession proceedings have started, they cannot be stopped. This is absolutely not the case. However, you need to understand exactly how to approach these situations. Expert help and advice is the key here to ensure you get the best outcome.
Why Should I Trust EU Property Solutions?
For over a decade, we have been helping people in exactly the same situation you find yourself in. We understand that you have probably been lied to by the bank, developers, and estate agents. If our amazing results don’t say enough for themselves, check out some of our testimonials or call our office and speak to a team member. You can even chat with previous clients of ours over the phone!
Why not get in contact?
We are always happy to offer a free, confidential review of your situation.
This helps us understand exactly what stage of the pursual process your lender is at and will also help you understand your best options to solve your property debt issues.