Mortgage Default French Banks

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Mortgage Default French Banks

Hello,

I am having some problems with my bank at the moment. The rent payments have been made late but are being paid but there have been some shortfalls on my mortgage payments.

 

The bank have got bailiffs involved and now all my rent is paid to them. The bank emailed me saying they propose to sell my apartment for 160,000 euro   despite the purchase price being 260,000.

I contacted them and asked to make an agreement where I could send extra payments to my account to top up the rent and cover any late payments.  I  told them that if they accepted the money that I would take this as thier agreement to the conditions.

They haven't been in  touch for a few months and just got an email from them saying they are going to continue with the sale of my property and they can't give me a good response.

I have continued to negotiate with them and also contacted the bailiffs.  I am not sure what to do next. I believe the bailiffs involved are there to mediate and help reach an agreement.

I hope someone can give me some advice.

Thanks

I am afraid the bailiffs are not at all there to mediate: They have been instructed by your lender to serve a formal payment demand which is the first step of the repossession proceedings of your French leaseback.

The formal payment demand the bailiffs will have served upon you will also include a statement whereby the lender declares that your mortgage has been foreclosed.

It probably is to late now to apply to the Court for a repayment holiday pursuant to the French Consumer Protection Code. Unless you can settle the arrears, penalties and interest, your best option probably is to try and rapidly sell your French leaseback property. Beware though - the sale price will beed to be sufficient to clear the mortgage or the (private) sale will fall through and the bank will get your property sold at public auction.

 

 

Thank you for your reply. I’ve tried to negotiate directly with the bank but I haven’t got anywhere. As yet they still haven’t repossessed my property and this has been going on for many years. I’m sure that if I had control of my property I could improve the rental income. The problem is that the management company also refuse to cancel the lease and are paying me next to nothing in rent. I’ve also asked if the bank can assist with legal action against the management company. My only option seems to be to take the management company to court. By the time that’s resolved my property could be repossessed. 

 

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