French banks can in principle chase the borrower for payment of any shortfall, after the mortgaged property is sold through repossession proceedings called 'Saisie Immobiliere'.
The worst possible scenario legally for an Irish citizen/owner who ceases paying his French mortgage is that the French lender, having sold the property at auction, pursues payment of the shortfall, if any, against assets situated in Ireland.
The risk of the above materialising is remote however. Should there remains a shortfall after a repossessed leaseback property gets sold at public auction, creditors could in principle pursue payment of the balance from the defaulting owner. French Courts should have sole jurisdiction for this and therefore the risk of being sued in Ireland is very low.
Please note however that a Judgment obtained in France could be executed in the Republic of Ireland. Under EU Regulation EC 205/2004, the procedure is simplified where claims are uncontested. In such a case, the French lender could obtain a European Enforcement Order against the Irish borrower and execute the same in Ireland.
European Enforcement Orders entail automatic recognition and enforcement, without any intermediate proceedings or grounds for refusal of enforcement of judgements handed down in another Member State. For contested claims, the lender would first need to apply in Ireland for an enforcement certificate called 'exequatur' in French legal terms, and then enforce the French judgement as if it had been issued in Ireland.
To my knowledge, very few French lenders actually take such a step, because foreign enforcement procedures are usually regarded by French banks as being uneconomical.
English
Français
They sell it for peanuts and then come after you to get the shortfall.
French banks can in principle chase the borrower for payment of any shortfall, after the mortgaged property is sold through repossession proceedings called 'Saisie Immobiliere'.
The worst possible scenario legally for an Irish citizen/owner who ceases paying his French mortgage is that the French lender, having sold the property at auction, pursues payment of the shortfall, if any, against assets situated in Ireland.
The risk of the above materialising is remote however. Should there remains a shortfall after a repossessed leaseback property gets sold at public auction, creditors could in principle pursue payment of the balance from the defaulting owner. French Courts should have sole jurisdiction for this and therefore the risk of being sued in Ireland is very low.
Please note however that a Judgment obtained in France could be executed in the Republic of Ireland. Under EU Regulation EC 205/2004, the procedure is simplified where claims are uncontested. In such a case, the French lender could obtain a European Enforcement Order against the Irish borrower and execute the same in Ireland.
European Enforcement Orders entail automatic recognition and enforcement, without any intermediate proceedings or grounds for refusal of enforcement of judgements handed down in another Member State. For contested claims, the lender would first need to apply in Ireland for an enforcement certificate called 'exequatur' in French legal terms, and then enforce the French judgement as if it had been issued in Ireland.
To my knowledge, very few French lenders actually take such a step, because foreign enforcement procedures are usually regarded by French banks as being uneconomical.
I hope the above helps.
Fabien Cordiez
French lawyer and Solicitor
www.french-lawyers.com