Default on mortgage

[jbm]

Can anyone help?

I have had enough of Bulgaria to last me a life time with many broken promises regarding rental returns, and false promises about the capital value of my 2 apartments significantly increasing.

I am now seriously considering stopping my monthly mortgage payments with my Bulgarian bank.

Does anyone know, if I stop paying the mortgage will it affect my credit status here in the UK?

Also once the bank has repossessed both apartments, and eventually sells them do they have any legal ground to seek to recover the outstanding balance from me?

 

[KayJay]

Well, first of all you may have regarded projections of possible rental income and increases in capital value - all based on previous market performance - as "promises, but I doubt that you have any contracts guaranteeing what is out of the hands of anyone but the Almighty (assuming He/She exists ). Some owners in one of the complexes where we have property did receive a guaranteed rental agreement from the Management Company and they did okay for a couple of years but unsurprisingly the agreement wasn't renewed when it expired.

If anyone is given judgement against you in a Bulgarian court (or any EU court for that matter),EU law allows for this to be enforced in any other EU member state without a further hearing in that state. So the simple answer is that it will probably not only affect your credit rating in the UK but the judgement can also be enforced against any property you may have in the UK. If you fail to abide by the ruling of the Bulgarian court it can also become a criminal rather than a civil matter and you can well imagine what THAT might mean.....

The normal way that repossession and subsequent sale is handled here is that the property is auctioned on this site: BG Repossession Sales and the amount realised is offset against the debt. It is not uncommon, as used to happen in the UK (and maybe still does),for certain "favoured parties" to buy the pick of the bunch for a song - the defaulter can then be pursued for the difference. Court cases can drag on for a LONG time here, so you could easily find yourself looking over your shoulder for years to come.

Depending on what and where you bought, and how much you paid, your investment may well come good with time, so I'd be inclined to stick with it if possible. Next best option would be to sell for what you can get and ask the buyer to take over the mortgage - if the price is right it's a reasonable compromise for both parties; this has happened in our complex. Cutting and running MIGHT get you out of the frame but it might well be an even worse decision than the one to buy here that you obviously regret so much.

 

[mart359]

The banks will persuade you for sure to pay all outstanding balance. Even if they sell it for much lower than first auction , usually second one is 20% lower.

 

[seamus]

default on morgage

you my as well hold on them til next march and try get rid of them .. Where did buy , And i know exactly what you mean its a rip offfrom the time you get off the plane whether its changing money buying a ice cream or using a taxi bestof luck