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House Repo Query
b0rker
Posts: 479 Forumite
Hi,
I bought a house in the UK for £100,000 in September 07. I suspect that this house will be worth maybe £70,000 when my current mortgage deal expires in August 2009. I will therefore have a £30,000 shortfall. I do not have this money.
I also own a property in Poland. It is probably worth about £70,000. I owe about £5,000 on the mortgage on this property. The mortgage is with a Swiss company.
My question is that if I hand the keys of my UK house back to the mortgage company will they then be able to force me to sell my house in Poland to recover the £30,000 shortfall?
Many thanks in advance.
I bought a house in the UK for £100,000 in September 07. I suspect that this house will be worth maybe £70,000 when my current mortgage deal expires in August 2009. I will therefore have a £30,000 shortfall. I do not have this money.
I also own a property in Poland. It is probably worth about £70,000. I owe about £5,000 on the mortgage on this property. The mortgage is with a Swiss company.
My question is that if I hand the keys of my UK house back to the mortgage company will they then be able to force me to sell my house in Poland to recover the £30,000 shortfall?
Many thanks in advance.
0
Comments
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As Poland is in the EU, I would guess that the UK residual debt would be sold to a Polish debt collection company who would chase you through the Polish courts.0
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Why cant you just continue your mortgage with the same lender?0
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Trollfever wrote: »As Poland is in the EU, I would guess that the UK residual debt would be sold to a Polish debt collection company who would chase you through the Polish courts.
Thanks for the reply.
As the mortgage on the Polish house is with a Swiss bank would the residual debt not be sold to a Swiss company? Or would they need a Polish debt collection company to chase me for debt in Poland regardless of which country the mortgage is held in? I am a Polish national by the way. If that makes any difference as to who will chase me for the residual debt.0 -
I meant the english house, I dont know the ins and outs of your agreement, but if you extend your mortgage deal, are they likely to revalue?
But which country are you planning to live in? You cant just hand keys back, the house will be repossessed and you will be liable for the shortfall when its sold.0 -
My question is that if I hand the keys of my UK house back to the mortgage company will they then be able to force me to sell my house in Poland to recover the £30,000 shortfall?
What makes you think you can just "hand back the keys"?
You are still liable for the £30k shortfall.[FONT=Arial, Helvetica, sans-serif]Rise like Lions after slumber
In unvanquishable number -
Shake your chains to earth like dew
Which in sleep had fallen on you -
Ye are many - they are few.[/FONT]0 -
I meant the english house, I dont know the ins and outs of your agreement, but if you extend your mortgage deal, are they likely to revalue?
My mortgage is with Northern Rock so I cannot stay with them. A Together mortgage. The mortgage itself is for £100,000 with a £5,000 unsecured loan. So essentially the mortgage would be £100,000, the value would be £70,000 giving the £30,000 shortfall. In the current climate I would be very lucky for any prospective mortgage company to do a revaluation.But which country are you planning to live in? You cant just hand keys back, the house will be repossessed and you will be liable for the shortfall when its sold.
I would possibly move back to Poland. I am happy to serve the debt that I have created. My concern is that I may lose my house in Poland. I would prefer for this not to happen obviously. So the query is really as to whether there would be legal rights for the UK mortgage debt to force the sale of the Polish house?
Sorry if this is a bit complicated.0 -
Hi,
I bought a house in the UK for £100,000 in September 07. I suspect that this house will be worth maybe £70,000 when my current mortgage deal expires in August 2009. I will therefore have a £30,000 shortfall. I do not have this money.
I also own a property in Poland. It is probably worth about £70,000. I owe about £5,000 on the mortgage on this property. The mortgage is with a Swiss company.
My question is that if I hand the keys of my UK house back to the mortgage company will they then be able to force me to sell my house in Poland to recover the £30,000 shortfall?
Many thanks in advance.
Does your Morgatge Company know that you have property in (or connections with) Poland?0
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