What happens if you have been unable to pay a mortgage in Europe? Property has been sold by estate agent there but did not make enough to pay off full mortgage. Can they sue you in England for the balance - how is it best to handle this as do not have money to pay and do not want it to effect our home etc. in the Uk. Property in Europe was holiday property in France.Regards.Liz
Province/Country relating to question : France
Hi thanks for your question. I will assist you with this.
Unfortunately, if there is a deficit on what you owe the bank, then there is EU legislation which allows foreign banks to pursue you in your home country.
I would recommend that you contact the bank to see if you can come to an agreement about the amount outstanding. If not, the bank can issue proceedings against you in France and then seek to enforce this in the UK. If they do this there will be the additional legal costs etc.
If your property in UK is heavily mortgaged then it may not be worth it to pursue you, but the bank will not know that and if they get a judgment against you, this could affect you and your credit.
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