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The word repossession incites doom and a feeling of dread in all of us, particularly when we are talking about property that we own abroad.
You’ve spent time-saving and planning for your home purchase abroad, created amazing memories here with your family, only to be left in a situation where unfortunate events or poor finances have resulted in repossession.
So, what does repossession actually mean and what course of action should you take if you find yourself in a position where your holiday home is going to be repossessed?
Read on to find out everything you need to know about property repossession and how we can help you overcome it.
What is repossession?
If you purchase a house using a mortgage, you will technically own the property but your mortgage lender will have a financial claim against it. If, for whatever reason, you are unable to make all of the payments your lender will attempt to get the money back from you, along with any other missed interest payments and fees. One of the ways that they may choose to do this will be through repossession of your property. The courts will have to decide that this is an appropriate course of action and will also decide whether bailiffs will be sent to evict you. Once a lender has taken control of your home, they will sell the property and recover all of the money that you owe, as well as additional costs that have built up.
Is the situation any different or worse with property abroad?
If you buy a property abroad and are subsequently required to borrow money abroad, lenders will be able to follow you home to the UK and take action against you through the UK courts.
What’s the worst case scenario?
Unfortunately, repossession can lead to bankruptcy in very bad circumstances. Foreign lenders have the right to follow you back home, which means moving back won’t always means you aren’t chased for outstanding payments.
What’s the best course of action?
There are a number of things you can do if you find yourself in a position where your home is going to be repossessed. Handing back the keys to the property and surrendering yourself is one course of action, but should only be taken in serious circumstances with proper advice and guidance to avoid bankruptcy.
If you are dealing with repossession it’s imperative that you seek help from a well-informed third party. Here at EU Property Solutions our team of specialist advisors are well-versed in dealing with these types of occurrences and also know the foreign court systems inside out. For advice and to have all your questions answered get in touch with us here.