mortgae in Germany

Jsaid

Hi there,
I currently have IVA in UK , I have been cheated by an agent in the past with very bad investment property in Germany, there is mortgage with bank, mortgage amount is 100k euro but property only worth around 60k euro, I really would like to walk away from the mortgage and these properties because I cant afford to pay the mortgage and don't have any money for property maintenance, property in very condition so I cant rent them out for income. Agent shown me photos of different property in better location but they got me very bad property in bad location.


Agent is disappeared I don't know where he is now I am stuck with this bad deal, what will happen if I walk away ? I live in UK I don't live in Germany, please advise me - Thank you in advance

sourcrates

Hi,


They would have to trace you in the UK if they didnt have an address for you, but you can be pursued if they choose to do so.


The bank will have the same recourse to use the courts like anyone else.

Just_Di

Jsaid wrote: »

I currently have IVA in UK , I have been cheated by an agent in the past with very bad investment property in Germany, there is mortgage with bank

Has your IVA provider given you any advice about this debt?

I don't know how long ago you took out these mortgages or when you last paid anything towards them but is there a possibility that the bank may have already taken possession of them?

(You have another thread about a similar situation is this the same issue?)

Di

Jsaid

Iva team advised me to go for bankruptcy which I am reluctant to do... I am looking for alternative options

Little_Miss_Winner

How long have you had the mortgage and the property? Is it vacant or is someone living in it ?
You need to give more details in order for people to advise you.

buglawton

Sounds as if you were a victim of a scandal that happened in Germany possibly around 10 years ago, OP. Old flats in dodgy areas tarted up then packaged up to be sold as surefire investments to absentee landlords. It was a mis-selling scandal to rival PPI and all the agents have vanished now of course.

To give us a clue you'll need to at least reveal who the lender is and if the agent was doing a lot of advertising at the time, under what name?

Your only hope is that the schemes were retrospectively deemed illegal by a court and that some debt relief for borrowers was imposed on the lending banks.

Jsaid

Mortgage is from 2013-2014, one property is empty and other one is rented, both property requires work for around 15k euro, agent who used to look after the property paid couple of years towards my mortgage , but new agent told that they never paid anything towards to utility bills and council tax, for all these years, agent is who got me the properties is disappeared

Jsaid

One option is to keep properties to myself and do the maintenance work for 15K euro and pay for the unpaid utility bills for 4 years. Total cost will be around 20K euro, and hope property price will go up in next 10 to 20 years


Second option is to walk away, because property is in Germany


Please give me your advice

buglawton

I think you may really be looking for advice on how to walk away from the debt. Loans that size if unpaid will definitely follow you back to the UK via an efficient debt-collection agency which likely will be able to damage your credit record if not actually take you to court.

I find it hard work to self-manage a couple of BTLs within 30 mins drive, never mind anything further away. Hence in your shoes I'd sell up.

So my advice is liquidate the properties at best price possible and pay off the balance. Things might be on the up in Germany as there's a chronic shortage of centrally located flats in popular towns and cities, with rents on desirable flats rising sharply. So maybe the liquidation prices won't be a disaster. Everything depends on the desirability of the location and getting a decent selling agent.