I want to sell but how do I communicate with my foreign lender?

An empty holiday home is a headache. No rental income can make it difficult to keep up with Mortgage Payments, Associated taxes and  Management fees and is an investors worst nightmare. This alone is a reason to sell.

EU Property Solutions assist clients with the orderly disposal of foreign property assets. Depending on your situation it may be necessary to contact your lender.

Scenario 1 – the sale price covers the outstanding mortgage debt and you expect to make a return. In this instance there is no need to contact your mortgage lender. Market the property with a reputable agent (be aware European Estate Agents are quite expensive) sale and ensure the correct mortgage redemption funds are released by your solicitor. This closes the matter.

Scenario 2 – the sale price wouldn’t cover the outstanding mortgage debt and you are in Negative Equity. This is the situation in which EU Property Solutions excel. We know many overseas property investors find themselves in negative equity often with arrears on the account.

In this instance you can miss payments and allow the property to be repossessed. Due to the level of property repossessions throughout Europe, and specifically Spain, this process can take years! But don’t think leaving the property to be repossessed or handing the keys back to your lender is the end of it. Given the property is in Negative Equity you will owe the lender a Shortfall Debt. This can be pursued in the United Kingdom or any home state for that matter. Ignoring this can lead to your home assets being in jeopardy. Be careful in this route and ensure you have full advice’s as to the ramifications.

The second more logical route is to liaise with you lender. Since the 2008 Global Financial crisis many banks/cajas have changed structure. EU Property Solutions know these Banking structures and the routes to take in liaising with your lender to off load the troublesome property and negotiate a full and final settlement with the lender. Being amicable with your lender is key and having an intermediary removes the emotion from the situation and can bring around resolutions that are positive for all parties involved. We have contacts in the majority of Spanish lenders and other European Banks and understand how each Bank works through this scenario. Accordingly, we can tailor our advice to your situation.

Should you or anyone you know have a European Holiday home that has become a headache then call us today on +44 (0)330 124 1230 to arrange your free initial consultation.

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