Take Action When Faced with Repossession
Mortgage arrears, or repossession, can seem like the end of the world—especially if the amounts your lender is chasing for are far and above what you can pay. Issues are further complicated when the property is abroad, and you’re left in a maze of confusing legal systems, difficult language barriers and different protocols than those in place in the UK. These can leave you feeling that there is no way out.
Due to recent foreign rulings on property debt, lenders can follow you home to the UK and aggressively take action through the UK courts. Ignoring letters from lawyers and banks or Cajas will only stand to make the problem worse if you do get a summons to a UK court. Voluntarily surrendering is a drastic action that shouldn’t be undertaken lightly, but it can be an option for those who are struggling with unaffordable property debt.
Remember Advice in this situation is needed.
Repossession of a foreign asset can feel like a failure; however, this can give people the realisation that they need to face their debt problem and seek advice. Even if the property abroad is in negative equity, you are still liable for the shortfall.
Having a third party enter dialogue with the lender and attempting to settle the debt, before repossession, is a better option. Yes, it may seem easy to consider handing back the keys, however without formal engagement you can be vulnerable to Bankruptcy.
Repossession may lead to Bankruptcy.
Since foreign lenders can chase their debts across countries, handing back the keys and moving back home isn’t a guarantee that you won’t be chased for the liability. As lenders become aggressive and cross into home territory, the likelihood is that you will incur significant consequences that can lead to the lender filing a petition for bankruptcy, this puts all your assets at home at risk.
If you are unable to keep up with mortgage repayments on your foreign property and are considering voluntarily surrendering your property, it is best to engage with your lender beforehand. To do this, it is advisable that you enlist the services of a foreign property debt specialist who can negotiate on your behalf and provide options which were not previously available. This option can, in fact, reduce your liability.
Using a professional third party can help clients get away from the pressure
Using an intermediary service like us at EU Property Solutions is one of the best ways to act when faced with the prospect of repossession. Our experts deal with these issues every day and are familiar with intricacies of the foreign court systems. We act on your behalf to the creditors and negotiate on all outstanding debts. We can provide options for you so you can move forward with your life debt free.
For more information read our previous repossession blog, or click open the Web Chat in the bottom right-hand corner to talk live to an advisor today.