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I'd prefer to rephrase the question and ask why wouldn't the lender come after borrowers for the difference between the loan and the realised value of the property irrespective of where the borrower is from?
The answer still hasn't been given and I would be interested in it. I am of the belief that if someone defaults in a country outside of Ireland it will not affect their credit rating in Ireland today. However in the future I believe this will all have to change as people with foreign investments will just walk away from the mortgage and property.
Anyone able to clarify the original question?
Firstly, if it is a non-recourse mortgage then there is never going to be a bad debt (even in the US.)
Secondly, companies check against credit reference agencies. There are many different ones. You should contact these agencies for a definitive answer on how they calculate your credit history and resulting score. For example [broken link removed]
I see no reason why these credit reference agencies are restricted to holding information only obtained from Irish companies and about Irish mortgages. In the opposite direction the data protection act might protect you from US agencies (European companies cannot generally send personal data to the US as it does not have the same safeguards, although there are exceptions.) I would guess these guys have already got their act sorted regarding cross-border distribution of data.
See http://en.wikipedia.org/wiki/Credit_bureaus
Quote: "In the United Kingdom, the three credit reference agencies are Experian, Equifax and Callcredit, which works closely with its US partner, TransUnion."
You should be able to get a credit history for yourself of all of the personal data they hold on you on request from each company under the provisions of the data protection act. They may or may not make it easy to get the data, but they do have to provide it (for a nominal fee of a couple of quid) Look for "statutory credit report by post."All those credit agencies in the UK are for commercial customers only.
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