What if I default...?

[val304]

I hope in the right section..

I bought a property in Cyprus back in 2007 which was completed by Giovani in 2008. Started paying for the property in November 2008.

Originally was told mortgage would be £350 per month. But, when we went to the bank to sign, the mortgage was 793 Euros which has since shot up to 858 Euros. The Power of Attorney signed this without informing us of the amount we would be paying. If they would have looked at our accounts, they would have seen that there was no way we could afford it.

Speaking to Alpha Bank in June 2010 they put us on an Interest Free mortgage for 12 months only when they realised the situation. This expires in June 2011 and our mortgage, if it hasn't risen any more, will be 858 Euros which is quite impossible for us to pay.

It has been up for sale with buyandsell as an unfurnished property since 2008 but we have only had around 8 viewings. We have dropped the price as low as we can so that we can just pay the bank back but yet, this has not helped.

Could you explain our legal rights?

[Nigel Howarth]

Hello val304 and welcome to the forum,

Take a look at the thread Cyprus Banks taking legal action in UK - this explains what could happen and possible steps you may wish to take to prevent this happening.

One thing that puzzles me:

But, when we went to the bank to sign, the mortgage was 793 Euros which has since shot up to 858 Euros. The Power of Attorney signed this without informing us of the amount we would be paying. If they would have looked at our accounts, they would have seen that there was no way we could afford it.

If you went to the bank to sign the mortgage agreement, didn't you query the amount? Even at today's poor rate, £350 = €416.

The reason it has shot up is currency fluctuations and I expect the bank may have increased its margin.

Take a look though the thread above, there are a couple of law firms that may be able to offer asistance.

Regards,

[val304]

Hello, I will definitely have a look at the link, thank you.

We did query the amount of repayments at the bank and told the bank manager that we could not afford them. But unfortunately our solicitor, acting as power of attorney had already signed the agreement for the larger amount unknown to us. The bank informed us that as it had already been signed, there was nothing they could do.

Best regards,
Val

[Pantheman]

what is the property you have and where is it located??

[val304]

Hello Pantheman,

It's a one bedroomed penthouse located in Yiasemi Court, Kapparis.

Regards,
Val

[Nigel Howarth]

our solicitor, acting as power of attorney had already signed the agreement for the larger amount unknown to us.

Your lawyer acted wrongfully. He/she should have advised about the terms of the mortgage before proceeding. Recently, a Paphos-based lawyer was fined €1,000 for acting in this way.

Regards,

[val304]

Thank you Nigel for all the information,

How would you suggest we proceed?

Kind Regards,
Val

[Nigel Howarth]

Dear Val,

There are two legal groups investigating claims of possible mis-selling. I suggest you contact one or both of them to see if they can help

The city law firm of Healys LLP who has teamed up with L.G Zambartas LLP here is Cyprus. The Healys Partner dealing with these cases is Chris Christofi at chris.christofi@healys.com

There is also the Judicare Group which has teamed with TCA Law Firm of Nicosia.

Regards,

[thedesignboy]

I'm in the same situation. It's just terrible. The bank are willing to help. But they want their money. I tried the above lawyers but they seem to need cash to investigate. Understandably as its silly to work for free. I have ceased paying the banks but it's the worst thing to do. I'm hoping an action will be brought against them soon and I can get on the band wagon. I've zero cash to do anything else.

[Nigel Howarth]

Unfortunately thedesignboy, it takes time and effort to investigate these claims and lawyers will charge.

This point was raised at a meeting I went to last Wednesday.

Regards,