TimLance
14 Jul 2012
Real Estate / Polish Property - should I keep renting it out? [17]
Hi there, I am looking for some advice.
I am originally from UK but now work in Asia as a teacher. I bought one property in Poland in approx 2008 and it has not gone as expected. First major issue is that the mortgage is in Swiss Francs and so have seen a huge currency swing - mortgage is worth now double the purchase price. Therefore rent does not cover mortgage and in fact a huge defecit that I cannot afford to pay - I am having to top up approx 450 pound sterling a month. Second major issue is that property prices have also dropped significantly.
In the current position I cannot afford to keep paying the mortgage - one of two things has to happen, either the bank will have to negotiate or I have to walk away from the property and leave to the bank. I have tried to contact the bank on numerous occasions on this matter and other things and got no reply at all. Of course language is an issue but even when I have asked Polish speakers who are legally able to represent me, still no response at all. My preference would be to be renegotiate which happens regularly in UK - is this something that bank likely to do in Poland ?? If not, I will have no option but to walk away - if I do what is the implication for me ? I dont live in Poland, in fact live in Asia and have done for many years. What would the banks response be in this situation and would they be able to track me down ?? This is a very diffiucult situation so if anyone has any advice or relevant experience please let me know
Thanks, Tim
Hi there, I am looking for some advice.
I am originally from UK but now work in Asia as a teacher. I bought one property in Poland in approx 2008 and it has not gone as expected. First major issue is that the mortgage is in Swiss Francs and so have seen a huge currency swing - mortgage is worth now double the purchase price. Therefore rent does not cover mortgage and in fact a huge defecit that I cannot afford to pay - I am having to top up approx 450 pound sterling a month. Second major issue is that property prices have also dropped significantly.
In the current position I cannot afford to keep paying the mortgage - one of two things has to happen, either the bank will have to negotiate or I have to walk away from the property and leave to the bank. I have tried to contact the bank on numerous occasions on this matter and other things and got no reply at all. Of course language is an issue but even when I have asked Polish speakers who are legally able to represent me, still no response at all. My preference would be to be renegotiate which happens regularly in UK - is this something that bank likely to do in Poland ?? If not, I will have no option but to walk away - if I do what is the implication for me ? I dont live in Poland, in fact live in Asia and have done for many years. What would the banks response be in this situation and would they be able to track me down ?? This is a very diffiucult situation so if anyone has any advice or relevant experience please let me know
Thanks, Tim