Can I default on an overseas mortgage?

B

browtal

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If I default on a mortgage in France, on a holiday property, am I still liable in Ireland for the balance still due.
Currently I have paid about €40,000. It was meant to be a holiday type property, an agency would let it for 10 years. This had not materialised and there is no return as the agency has left the property. Another agency did take it over and l had some lettings for part of the season but again they have left.
I am anxious to just get out of the deal and leave the property. How would I be fixed legally here, would the remaining debt follow me. The loan is with a French bank.
The challet is Parentis near Bearritz - anybody else in this situation. Anybody out there willing to take over this problem?
Browtal
 
The debt will follow you. All the French bank has to do is find you.
 
Without my being rude, they can and they will,, and I don't wish to scaremonger anybody.
 
Illegally no doubt by using corrupt employees of the revenue and social welfare.

I cannot think of any lawful way a persons address can be obtained from a PPS number by a non governmental body.
 
You can't remain in Ireland and run away from the debt. The French bank has all your details including your address etc. As you've paid off 40K would you not be able to sell the property and break even? If not can you afford to pay the mortgage? Can you sell for a loss and cover the shortfall from your savings.
 
Yes that is the place. I have heard that a group of owners are going to try to operate the units this year and take a %. That is good news indeed. Meanwhile anybody interested?
Browtal
 
if you defaulkt then yes (of course) you are still liable.

the real question is.......would the French bank chase you for the money if you are living in Ireland. I would be interested to hear the answer to this. I would have thought they wouldn't bother due to the high legal costs of chasing somone up in another jurisdiction......just guessing here, could be completely wrong.

anyone any expierience of foreign banks chasing a borrower in his home country after default
 
I am sure it does happen where they know where the borrower is and the amount of money is worth chasing in view of the high legal costs.
 
Time said:
I am sure it does happen where they know where the borrower is and the amount of money is worth chasing in view of the high legal costs.
Click to expand...


Bearing in mind that the costs will be paid for by the borrower if he is a good mark will be part of the banks decision.
 
browtal said:
Yes that is the place. I have heard that a group of owners are going to try to operate the units this year and take a %.
Click to expand...

Interesting article in the Sunday times yesterday on owners in France who have taken over the running of their own apartment block where the management company had gone bust.
 

Unless you're an expert in French law, "of course" seems a bit too definitive. In certain jurisdictions, the debt is attached to the property rather than the individual (hence the concept of "jingle mail" - posting the keys back to the bank and walking away). I'd get French legal advice.
 

I'm an estate agent in France.

To my knowledge, they can and probably will will follow you and this is probably something to avoid. Legals take years and years in France.

I've had instances in the past where a bank wrote down penalty interest payments, but not principal, as owner had reasonably good cash offer.

Communicating with the bank would be important.
 
They can try and follow you all they want, but unless you are foolish enough to leave them a forwarding address they can do very little.
 
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