Foreign property repossession

Hi

Does anybody know that if an investor were to constantly default on a mortgage on a foreign property and the foreign bank had to repossess the property, would said investors Irish credit bureau be affected or would it just be their bureau in that particular country. Apologies if this question has been asked before but I could not find it.
Thanks in advance

Bump!!

Twister , did you ever find an answer to that particular question. I have a friend that is in the same position with a French property.

I am trying to find out if the debt will stay in france or follow her home.

Anyone know the ans?

As far as I am aware, the Irish credit bureau will only register details of Irish credit history, and lenders would not usually have access to foreign credit bureau details.

However, I may be wrong and you should check this out - perhaps a friendly mortgage broker would know about this

The general consensus is that it depends on the size of the debt after the bank sells the property. If it is substantial enough to justify taking legal action in Ireland then they probably will, if not then they probably won't.

The latter scenario doesn't mean that the debt is not still owing, it is, but the bank may put it on the back burner.

However, as the EU is constantly in the process of harmonising cross-border taxation, debt recovery, etc. it is very likely that it may become a lot easier and cheaper to take action on retrieving this debt in the future.

If your friend takes this course of action tell her to be aware that the debt will never die, it will remain due. Like the Revenue, banks have very, very long memories and lots of patience when it comes to such issues.

on a slightly related note. I spoke to a friend in Spain who took out a mortgage with an Icelandic bank which promptly imploded. he is now very concerned that the banks debts will be taken over and the new owner will demand that they repay the principle in full immediately. on the plus side they are not paying any interest on the loan but the long term prospectus does not look too rosey. the very fact that this is in Spain with their quaint legal system further compounds matters.