There may be a lot of reasons, often outside of your control, that can result in you not being able to pay your Cypriot mortgage. Missed payments will undoubtedly result in mortgage arrears. As the arrears accrue so do the penalty fees and other costs. This makes a stressful situation even worse for you.
Whether this is a dream holiday home or an investment property, the best thing you can do is act quickly and get the right advice.
“How Did I End Up here?”
It can be very easy for a sudden change in circumstances to cause you to fall into mortgage arrears. If this happened to you, you’re not the first, and you won’t be the last. However, you must be proactive and seek professional advice.
A lack of funding is combined with reckless lending from Cypriot banks, especially during the ‘pre-crash’ era. This saw a mass number of mortgages being written irresponsibly to borrowers who would struggle to make repayments.
If you are in mortgage arrears, all is not lost, EU Property Solutions specialise in helping the owners of property in Cyprus by negotiating with Cypriot banks to get the best deal for YOU.
What Happens If You Fall Into Mortgage Arrears
If you have less than 4 months of mortgage arrears, you can pay the money owed plus any interest or expenses. We understand that this is likely not possible or practical. So, the big question is, “What happens next?”.
Unfortunately, laws were introduced in 2014 that sped up the repossession process in Cyprus. This gives Cypriot banks the ability to begin legal action, repossess properties and even sell properties after 4 months of mortgage arrears. This is a short timeframe in comparison with other countries. It’s a scary thought knowing that a few missed payments could see you lose your foreign property.
What Happens If Your Property Is Repossessed
Repossession may not be the end of your ordeal. These properties often sell for well below market value, and therefore, the banks will still ask you to pay the difference between the mortgage and the sale value. The shortfall could be significant…it usually is.
The banks can and will pursue this debt in the UK. This can be in the form of:
- Judgements
- Writs
- Orders Charging Land
- Bankruptcy
- They may also sell your loan to an aggressive third party called a Vulture Fund. Read more about how Banks chase debts in the UK.
Need Advice?
Falling into mortgage arrears can be difficult and stressful. You may hear different information from different sources and be unsure of how to proceed. If you are worried about mortgage arrears or your property being repossessed, we can help.
The team at EU Property Solutions are always on hand to give you the help and advice you need. We are experts in dealing with all property debt issues and specialise in dealing with aggressive Cypriot lenders.
If you need advice, please call us on 0330 124 1230 or email [email protected] for more information.
There is a common myth that if a debt is ignored for long enough, it will be written off completely. There is some truth in this. However, if there is communication, attempted communication or acknowledgement of the debt in any way, this is not the case. This means that, realistically, it is very unlikely that your mortgage will be forgotten about.
Another myth is that mortgages that were mis-sold do not need to be paid. You may have been mis-sold (especially if you bought pre-2008), but this is not a valid argument. It is essentially impossible to prove and cannot be used to release you from your financial obligations.
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!