you have to remember that unlike the UK and the States if you cannot pay your mortgage you cannot
walk away and post the keys back to the bank
You cannot walk away in the UK. The debt will follow you and if it is a joint mortgage, it will follow the other person as well.
If the bank repossess and fails to recover the debt at auction, the balance plus accruing interest, plus costs, will still be sought by the lender.
The situation with the house prices in Poland generally is that the sellers believe that their house is worth a certain inflated price and will not budge.
The following is a comment written in reply to an artical in an English Newspaper today:- The Telegraph. Thursday 08 September 2011
"These plans are completely devoid of reality. If you think you'll get lots of affordable nice housing out of it you're living in a dream world. There won't be any development until massive profits can be made. Until then it's cheaper to have all their labourers/builders/joiners etc. who are often subbies, unemployed. These are businesses - they're not going to build if no-one can afford to buy the things in the end."
The writer understands as well as I do, the "reality" of housing development. Three years since the financial crises began in 2008. How many of the developers in Poland have gone bankrupt? I have read of one Swedish development company which is going to finish off its projects in Poland and concentrate on the Scandinavian market as its not profitable for them here in the present market. The main players are all concentrating on smaller projects/apartments with prices that are acceptable by the banks for mortgage loans. This is what I posted, would happen, two years ago.