Tractor, I am in the exact same situation regarding two management companies oging bust, there is no secondhand market for our development as it is complicated by the VAT refunded by French Govt and the fragile nature or rental income./uncertainty as to its viability, with a yield now at 3.755 no one in the right mind would touch it unless it was a yield of 10-15% so that will give you the real value of your unit. I have asked various people on whether a French bank would take action against you with no definite answer. I am the one hassling my bank to try and work out a deal, have phoned them and written numerous e mails asking can we talk, threatening foreclosure, so I said fine let me know what the procedures are to foreclose and then the line went silent. If you dont have any other assets then it is not worth their while pursuing you in another country, did you buy it in joint names with someone else or on your own? On the other side of the coin if they did proceed and went to court then you would have a judgement against you.
I also this week wondered how I got myself involved in a so called safe investment but having spoken to various people, I came to the conclusion that yes it my problem but guess what Mr Bank Manager, this is our problem, not just mine, so let them feel some of the pain. I have not yet determined whether to walk as I would like to renegotiate but if that is not forecoming then I have to reconsider, mine is 26k in arrears, I only was advised of this when I hounded the bank for months for a statement for the last 2 years, still have not received same only got a one line e mail. Bet there are kicking themselves on lending to Foreign Investors.