ignition Posted February 28, 2011 Share Posted February 28, 2011 We own a substantial house in France which have been trying to sell for 2 years. We have a personal loan - NOT a mortgage - that is about 10% of what the property is worth. We can no longer keep up the repayments. We are in discussions with the bank. What action can the bank take in trying to get the money back from us? There is no mortgage on the property. Link to comment Share on other sites More sharing options...
Bob T Posted February 28, 2011 Share Posted February 28, 2011 As France is not the UK, I would think that the bank would try to get at your assets (ie your house) if you don't pay them back the money that you owe them. Link to comment Share on other sites More sharing options...
AnOther Posted February 28, 2011 Share Posted February 28, 2011 I'm not so sure there is really that much difference between UK and France, if you owe money in either they can come after your assets although I have little doubt that the French would be the more aggressive.As far as I understand it once judgement has been made against you, then the baliff can sieze your assets, and/or freeze your bank account, and/or sequester your salary if working, and/or place a charge on your property, and the ultimate step if the debt still remains unpaid, force a sale of the property.To be brutally frank I think in your position I'd be dropping my asking price to the absolute minimum I could live with. Most property will sell if the price is right.Good luck. Link to comment Share on other sites More sharing options...
Bob T Posted February 28, 2011 Share Posted February 28, 2011 That last sentence hits the nail on the head. Anything will sell at the price that a buyer is willing to pay. Link to comment Share on other sites More sharing options...
PaulT Posted March 1, 2011 Share Posted March 1, 2011 If nothing has happened in 2 years - and I know in France it can take a time to sell - then perhaps something is wrong with the price especially as money in places such as the UK is tight so there are less potential buyers.Perhaps best to drop the price as suggested so that you avoid any legal / reclaim bills etc to add to what you owe the bank.Paul Link to comment Share on other sites More sharing options...
Stan Streason Posted March 1, 2011 Share Posted March 1, 2011 As I see it you have 2 options. Reduce the price to one it will sell at and pay off the loan. Putting it bluntly, you owe money, it is your obligation to settle what you owe and not getting maximum price for liquidating your assets is not a viable excuse for doing nothing.As you have a loan which is not a mortgage I presume that the loan is unsecured. In UK terms the bank is in a fairly vulnerable position. If it were me in UK (apologies if this is not possible somehow in France) I would speak to the bank, offer them the property as security, extend the loan period to reduce repayments (or even go interest only), show them how the property is being marketed to convince them its a finite arrangement. In theory the bank are in a better, more secured position and should agree to this. Alternatively try another mortgage lender. This assumes you could afford the reduced payments and are creditworthy in the first place. If not then I'm afraid its option 1. Link to comment Share on other sites More sharing options...
hoverfrog Posted March 7, 2011 Share Posted March 7, 2011 in France, they can't take your primary residence from under you however much you owe.If it's a secondary residence, however, wave it good-bye if you can't afford to keep it up. Link to comment Share on other sites More sharing options...
ignition Posted April 15, 2011 Author Share Posted April 15, 2011 Thanks for the replies. The bank won't engage in any conversations with us-just keep sending threatening letters. Now conatacting a French lawyer to get information. Link to comment Share on other sites More sharing options...
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