swiss franc mortgage/sale of villa at reduced price

[rocket1971]

Just putting a situation on the forum to gauge any ideas/thoughts anyone may have.

We purchased in 2006 off plan villa at 199,999.00 CYP we were told this would be a swiss franc mortgage (not offered or made a aware of any other possibilities or equally the pitfalls that this came with)

We stopped paying the the mortgage over 2 years ago and now have a cash buyer.

The bank are receiving X amount from the buyer and have also asked for X from me, I cannot raise the full amount they are asking (a couple of thousand euros short) and have told the bank this.

My question being would the bank reject the sale due to my shortfall? I have no assets/savings here and the money I have raised is a loan this is all going through a reputable solicitor in Cyprus and therefore prior to the funds being released he wants assurance from the bank that no further action will be taken against us.

Just wondering if anyone else has been in this/is currently in a similar situation.

Many Thanks

[Nigel Howarth]

Hi rocket1971 and welcome to the forum.

Many, many people were persuaded to take mortgages in CHF without being advised of the risks. It's good that yo have managed to find a buyer.

My question being would the bank reject the sale due to my shortfall?

I have heard of a case where a bank prevented a sale because it would not have raised enough money to repay the mortgage. I don't know the name of the bank or the amount of the shortfall.

When you take out a mortgage to buy a property, your contract of sale is assigned to the bank - and this gives them the ability to prevent a sale.

What you need to do in this situation is try to negotiate a lower amount with the bank.

Regards,