Many people who contact us at EU Property Solutions report that they simply gave the keys back to their respective overseas lender and walked away when the market collapsed. A significant majority believe that ended their overseas property ownership and debt – this is incorrect.
As wronged as many feel they have been by the “loose lending” practices of Banks pre-2008, handing the keys back to a branch is not the way to resolve the issue. EU Property Solutions are contacted by many borrowers who followed this incorrect method and now face significant shortfall bills. From our experience handing the keys back and walking away results in the following issues:
- The Bank initiating legal procedures in their home country to repossess and sell the property. Bank sales or forced sales only achieve a maximum of 70% of the open market value increasing losses.
- Should the Bank seek a judgment in their home state collection and legal measures can be enforced in your home country. This puts your assets at risk, including your home.
- Given the Bank have spent funds on legal processes your chance of a settlement is reduced.
- European Banks look to place second charges on UK property – from here they can force a sale of your home.
Walking away resolves nothing – don’t believe the forums!
Instead, deal with your situation, liaise with your lender, understand your situation and the legal system of the country you purchased in and appoint an intermediary. This is where EU Property Solutions come in. We have multiple settlements across Europe. Here’s some advice from our experiences:
- Appointing an intermediary removes emotion and anger – many borrowers feel wronged but is a legal case of mis-selling going to end the burden of your debt? No. An intermediary removes an emotional attachment and can liaise with your lender to get the best settlement feasible.
- It’s not just you who has the problem – what about your Bank. They have what they may classify as a non-performing loan to resolve. Amicable negotiations benefit all involved.
- Be honest with your Bank. Transparency and willingness go a long way – even if you feel mistreated in the past.
Don’t ever walk away from debt – it will catch up with you.
If you are experiencing European Property Debt Issues or have handed the keys back to your lender and are concerned call us today on +44 (0)330 1241 230 or Click here to read our e-brochure.