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Nina Caldera
Nina Caldera,
Category: European Law
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This is a question re potential foreclosure on a mortgaged

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Hello. This is a question re potential foreclosure on a mortgaged property in Austria. Long story short - an interest only mortgage is due to be paid off in Dec 2022. The property could go on the market before then. Mortgage is approx 208k Euro, and property is now worth 325k Euro so there is 117K Euro equity. If the bank forecloses do we lose all the equity and/or would the bank return equity to us after they have sold and recovered the mortgage?
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: We are preparing to put the house on the market in austria
JA: Have you talked to a lawyer about this?
Customer: Not yet
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: yes - the house is a joint asset in a divorce settlement

Hello! My name is***** am specialized in international legal advice and today I am going to help you with your inquiry.

Dear client, your case is a bit complicated. I have to investigate several details before giving you an advice. As soon as I have a clear answer, I will be happy to respond to your query.

In the meantime, if you have any other important information to tell me, it would be very helpful.

Thank you for trusting JustAnswer!

Customer: replied 5 days ago.
Thank you - the information I gave is the essence of the situation. The only other point would be if we have already put the property on the market would the bank in Austria be likely to allow an extension of the interest free mortgage without foreclosure whilst we sell it? But the main question really is what happens to the equity in the property in Austria if the bank foreclose? Many thanks, David
Customer: replied 5 days ago.
Only other piece is that I live in the UK and am British. Property is in Austria, mortgage with a large Austrian bank (Raifessen).

Dear customer just to clarify. Who is selling the house? You or the bank? In other words, are they repossessing the property? Or are you selling it with the mortgage still outstanding?

Customer: replied 5 days ago.
Hi Nina and thank you for coming back to me. My question really is what would happen to the equity if the bank repossessed the property? They may do that if we can't sell it by the end of the year.

I understand dear client, thank you for your clarification. In case the property is repossessed the bank only collects what is owed, the value of the mortgage as such and the interest. The remaining money from that, if any, is returned to you as the owner of the property.

Customer: replied 5 days ago.
Many thanks Nina, much appreciated. David

I hope this information has been useful to you. If you have any other questions feel free to contact me and I will be happy to help.

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