Mortgages & POAs needs looking at NOW.
Investors should therefore initially check whether they have a copy of the Power of Attorney and if they do, whether it was executed correctly in accordance with Cypriot law. In most cases we have looked at they were not and as a result will more than likely make the mortgage in Cyprus invalid and unenforceable against the investor.
If investors do not have a copy of the Power, they should obtain one urgently from their Cypriot lawyer.
If you did not sign this in person in front of the certifying officer then your POA is invalid and therefore it makes the mortgage invalid.
As Powers of Attorney may be invalid and therefore render the mortgage invalid, investors should be very careful not to sign a new mortgage agreement in front of a certifying officer as banks are now attempting to get investors to switch from an invalid negative equity debt to one that is legal!
If investors fall into this category, it is suggested they seek legal advice to avoid possible financial ruin. Are all the risks of a Swiss franc mortgage explained? They should be, but we doubt whether this is the case!
Most risks are glossed over and if investors were to be told that they were about to enter into a legally enforceable agreement against them that they were gambling their mortgage debt on a foreign currency, would they do so?!