Foreign Property Default
m4rtyboy
Posts: 7 Forumite
Hi
Not sure if this is the correct forum but giving it a go here.
I have a property in Bulgaria secured on a mortgage issued by a Greek Bank.
The property is a drain as is the mortgage and I want to walk away. However I cant find any information as to what the consequences will be? I am married and have a UK mortgage, can they go after my UK property or any savings that we have. The property is in my name so assume they cant go after anything in my wifes name?
When I applied for my mortgage I never declared this property and it has never come up on any mortgage searches. I dont want to walk away but I cant sell it and its not just not affordable.
Thanks
Martin
Not sure if this is the correct forum but giving it a go here.
I have a property in Bulgaria secured on a mortgage issued by a Greek Bank.
The property is a drain as is the mortgage and I want to walk away. However I cant find any information as to what the consequences will be? I am married and have a UK mortgage, can they go after my UK property or any savings that we have. The property is in my name so assume they cant go after anything in my wifes name?
When I applied for my mortgage I never declared this property and it has never come up on any mortgage searches. I dont want to walk away but I cant sell it and its not just not affordable.
Thanks
Martin
0
Comments
-
Why can't you sell it?
The first thing I would check is for any connection between the Greek bank and a bank over here; far easier to chase you if there is a branch in the UK that is equiped to chase debtors.
At the worst, I would guess the greek bank could get a charging order on your property here, so on sale they would get their money.
Also look at Bulgarian rules on repossession and any terms and conditions in your mortgage offer that says what happens if you don't keep up with payments. You can't assume that they deal with repossessions in the same way as here.
Also worth exploring this forum for foreign property owners:
https://www.laymyhat.com/forum/I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Firstly the good news, I am unaware of any mainstream UK banks or lender that have subsidiaries in Bulgaria.
Now the bad news....
Under EU law any court judgement can be enforced in any other EU member state without a further hearing in that country.
So yes, if the amount makes it worth their while (or any debt collector they sell it to), the judgement can probably be enforced against any property and other assets you may have in the UK (but not your wifes).
Unlike the UK, ignoring a civil court order in Bulgaria can become a criminal matter with the obvious repercussions that stem from that.
Personally I would include this in any UK bankruptcy.0
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