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Please e-mail me privately. Thanks.
No, if the sale price is less than the outstanding amount owed on the mortgage, they can chase you for the remainder.I would have hoped that as soon as they would repossess, then any obligations to the Greek bank would be gone.
The original purchase price was €100,000 with the mortgage being €70,000. After speaking with a number of people, selling in the area, I am more confident of making at least the €70,000 sale.
At this point of sale I would still be looking at a €30,000 loss!!!
Is that loan with the same bank?I have another loan (to make up the other 30% after mortgage) which is costing 500.
What would be implications if I defaulted on the mortgage? It is with a Greek bank, with a branch in the UK! Would this effect my credit history here? Any advise would be appreciated!!!
I would have hoped that as soon as they would repossess, then any obligations
to the Greek bank would be gone. I am not sure that going through lengthy process would be the exit I am looking for here. The original purchase price was €100,000 with the mortgage being €70,000. After speaking with a number of people, selling in the area, I am more confident of making at least the €70,000 sale. For a front line beach property in this area, even in the current market, it would still represent good value. At this point of sale I would still be looking at a €30,000 loss!!!
I find it hard to understand how you seemed to believe that you could borrow money from a bank to invest in property in the hope of making a profit and then expect to get away Scott free with the bank taking the loss when that investment has gone tits up!.
Limited companies do it every day...
Would the risk of the loan, not have been reflected on the Loan to Value that I would have been offered (max 70%). The bank was obviously not that confident of the valuations first day. Also the interest I am paying on the mortgage 7.5% over 20 years, is quiet high, which would have produced a handsome profit over the term. Its a high risk/high return venture for them also with the associated upsides(high profit) and downsides(mortgage difficulties and defaults). Don't see how its terribly different.
Forgive me if I inferred incorrectly but, the bank has not acted as greedy money grabbing cowboys in this instance.
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