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Has my lender sold my loan on?
This may be your first question if you find that EU property debt is pursuing you through the UK systems. Many lenders will sell debt contracts on so they can recoup some money immediately, but you will still be liable to pay the debt to whoever has the contract.
Unfortunately, if you fall into mortgage arrears with your property abroad, you cannot waive the debt by taking the difficult step of handing back your keys to your lender. If your home is affected by negative equity then, by giving back the house you are only paying a portion of the debt and will be liable for all outstanding fees.
Banks over Europe have the power to chase debts through the court of whichever country the person they are chasing is a citizen of. This means that leaving the country where the debt was taken out is not a way of also leaving the money that you owe; your lender, Caja or Bank will want to recover that debt and will take appropriate steps to get the money back.
Countries have agreed this way of working so it’s easier for debt to be recovered across borders. UK courts can pursue Spanish nationals through Spanish courts, and Spanish courts can go through UK courts to recover debts owed by UK nationals.
If you fear that being forced to repay the loan will cause you to lose substantial assets back in the UK, it’s best to find experts in foreign property debt—preferably with contacts in European mortgage offices and lenders around the EU. Doing this as soon as you discover you are in trouble with negative equity or in debt to a bank will help the experts to be more proactive in your case, potentially securing a better deal for you. However, if you wait until a lender finds your debt in the courts, you may have a lot less time to find mediators or lawyers to potentially achieve a suitable deal for your lender and of course you.
EU Property Solutions have plenty of experience in this field, helping people deal with foreign property debt before it becomes an insurmountable problem, speak to us on live chat or call us on 0330 124 1230 now.