My parents in laws' home is worth around €1m. They're 70 and have a mortgage of €500k on which they're currently paying interest only. The bank are harrassing them and demanding that they switch to full capital and interest repayments.
They have an unemcumbered villa in Spain worth circa €600k and 2 other unencumbered investment properties in Spain worth circa €250k each.
Their income arises from a private pension and the State Pension and amounts to around €50k per annum.
Their plan is to sell the 2 investment properties in Spain and to use the proceeds to clear the mortgage in full. They do not want to sell their home. The bank are insisting on a "fire sale" (i.e. sale within a month) of the investment properties, but the estate agent has advised them that he will definitely get €500k for the two properties but that it'll take around a year because of the market.
What's the best way to deal with the bank? What rights do the bank have vis a vis forcing a sale of their home?
Many thanks.
They have an unemcumbered villa in Spain worth circa €600k and 2 other unencumbered investment properties in Spain worth circa €250k each.
Their income arises from a private pension and the State Pension and amounts to around €50k per annum.
Their plan is to sell the 2 investment properties in Spain and to use the proceeds to clear the mortgage in full. They do not want to sell their home. The bank are insisting on a "fire sale" (i.e. sale within a month) of the investment properties, but the estate agent has advised them that he will definitely get €500k for the two properties but that it'll take around a year because of the market.
What's the best way to deal with the bank? What rights do the bank have vis a vis forcing a sale of their home?
Many thanks.