Defaulting on a loan

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Tasmaniandevil
Posts: 23
Joined: 11 Mar 2011 16:43

Re: Defaulting on a loan

Post by Tasmaniandevil »

Hi Nigel,

I've now had a response from the Bank's lawyers after I had challenged them over the fact that the Court summons was sent to my previous address, thereby, denying me the opportunity to attend the hearing (I had informed the Bank of my change of address). I had suggested to the lawyers that, in the circs, the best course of action would be to have the judgment 'set aside' and a new hearing scheduled at a later date in order that I could attend the proceedings.
They have simply replied as follows: "there will be further hearing as a judgment has been issued against you".

As I believe that makes it much easier to have the judgment enforced in the UK, my concern now is that bailiffs will turn up on my doorstep. Although I don't have any items of any value, I still wouldn't wish to have anybody rummaging around my flat & possibly take away my TV & hi-fi (the only items of any value I possess.

As usual, would welcome your comments. Thank you.

TD
Nigel Howarth
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Re: Defaulting on a loan

Post by Nigel Howarth »

Hi TD

Don't worry about bailiffs, they can't enter your property - all they can do is try to encourage you to pay. (I wouldn't be surprised if the bank sent them to your old address before it issued the writ.)

I suggest you speak with a solicitor in the UK. I suspect that if you can demonstrate that you didn't receive the summons, you may be able to defend the hearing if the banks decides to seek an order from a court in the UK.

The people living at your old address may have the writ - alternatively you could get in touch with the court in Cyprus and ask them to send it to you.

Regards,
Nigel Howarth
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Tasmaniandevil
Posts: 23
Joined: 11 Mar 2011 16:43

Re: Defaulting on a loan

Post by Tasmaniandevil »

Good afternoon Nigel,

Reference the judgment that has been obtained against me, I note on the Court paperwork that I am named as Defendant (1) and the Developer as Defendant (2). Would this appear to suggest that the Developer is being pursued by the Bank jointly with myself (ie.due to them acting as Guarantors for the Loan?
Also, on the same paperwork, there appears to be a counterclaim by the Developers against myself & the Bank. Any ideas? Thanks again.

TD
Nigel Howarth
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Re: Defaulting on a loan

Post by Nigel Howarth »

Hi TD

Developers invariably guarantee loans as this enables the bank to recover the property if the purchaser defaults on their loan repayments. The developer isn't being pursued - he's just the conduit that the bank uses to recover the property.

I have no idea what the counter claim could be.

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Nigel Howarth
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Smurphy
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Joined: 05 Apr 2019 12:28

Re: Defaulting on a loan

Post by Smurphy »

Hello tasmaniandevil,
May I ask if and how things have proceeded? I am in a similar situation at the moment. I am considering sending the keys back to the bank with the hope of this being full and final settlement. I have guarantors involved and I know this makes matters worse for everyone.
Any updates would be greatly appreciated so I can think how to move forward.
Thanks
Sam
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Re: Defaulting on a loan

Post by Nigel Howarth »

Smurphy wrote: 05 Apr 2019 12:34 I am considering sending the keys back to the bank with the hope of this being full and final settlement. I have guarantors involved and I know this makes matters worse for everyone.
Welcome to the forum. I haven't heard from anyone who's managed to had their property back to the bank in full and final settlement.

Did you take a loan in Swiss Francs or Japanese Yen? If you there are a number of legal firms that may be able to help you by negotiating a settlement.

If you took a loan in €uros, I wrote an article that may help you - HELP – I can’t pay the mortgage!.

Regards,
Nigel Howarth
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Tasmaniandevil
Posts: 23
Joined: 11 Mar 2011 16:43

Re: Defaulting on a loan

Post by Tasmaniandevil »

Hi Sam, presumably, you've read my thread in full. Since the judgement was obtained by the bank, I've had no communication from 'anyone'. That's all I can tell you right now.

Good luck,

TD
Tasmaniandevil
Posts: 23
Joined: 11 Mar 2011 16:43

Re: Defaulting on a loan

Post by Tasmaniandevil »

Hi Nigel, I very much hope that things are well with you these days. As per my last posts the Bank obtained a judgement against me in 2015 - nothing further has happened in the interim. Having reviewed all my papers recently, a few thoughts:

( 1 ) Guarantor - Apologies for raising this old chestnut again as you have previously explained in detail what it does / doesn't entail. I am, however, still wondering if it is more than simply a ' means ' of obtaining the loan but rather has much greater significance than that, at least in my case anyway. The Loan Agreement clearly states that a Corporate Guarantee for the full amount has been given by the Developer as security. It states " by giving your guarantee through this document you may become wholly & solely liable for the principal debtor's liabilities". It has been signed by the Developer.

(2) Court Judgement - on the decision notice I am named as Defendant ( 1 ) & the Developer as Defendant ( 2 ). This suggests to me that the Bank are seeking a judgement against them also.

(3) When I stopped making repayments I received a letter from the ' top man ' at the Developers ( probably the largest on the island ). He states "it is with great regret that we have been notified by the Bank re: outstanding amounts...if you wish us to try and find a way out with the Bank...". He appears to be very concerned. Why? Could it be because he knows they could potentially be liable for the outstanding debt? I also noted that in various communications with them they seemed to be rather 'vexed' with me. Why? They have received 100 % of the purchase price - I haven't failed to make any payments to them. If I had I would understand. Could the answer lie in (2) above?

I would welcome your ( & anybody else's comments / opinions ). Thank you.
Tasmaniandevil
Posts: 23
Joined: 11 Mar 2011 16:43

Re: Defaulting on a loan

Post by Tasmaniandevil »

Hi, this is primarily for Pantheman. Just reviewed my whole thread and would be grateful if you could clarify this. Pan, on 16 Oct 2017, you stated that I had a 'chance to cut lose' due to my circs & you were wondering why I was concerned about the writ having (possibly ) been sent to my previous address? The answer is that even though I can't repay the debt, I feel it would have been useful if I was able to attend the hearing, present details of my circs to the judge, that may have prevented a judgement being awarded against me. Because I didn't receive the writ, I've now been denied that opportunity. Although I haven't heard anything from the Bank since 2018 (when they asked me to submit evidence of the housing & unemployment benefit I receive), I am still concerned about what action the Bank may take in the future. On 18 Oct 2017, you stated "handing back the keys & walking away will only make matters worse" that's pretty much what I have done but it seems to contradict what you said on the 16th ( ie "chance to cut lose"). Would you mind just expanding on that please? Thanks a lot, TD.
Pantheman
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Re: Defaulting on a loan

Post by Pantheman »

Tasmaniandevil wrote: 14 Apr 2023 16:49 Hi, this is primarily for Pantheman. Just reviewed my whole thread and would be grateful if you could clarify this. Pan, on 16 Oct 2017, you stated that I had a 'chance to cut lose' due to my circs & you were wondering why I was concerned about the writ having (possibly ) been sent to my previous address? The answer is that even though I can't repay the debt, I feel it would have been useful if I was able to attend the hearing, present details of my circs to the judge, that may have prevented a judgement being awarded against me. Because I didn't receive the writ, I've now been denied that opportunity. Although I haven't heard anything from the Bank since 2018 (when they asked me to submit evidence of the housing & unemployment benefit I receive), I am still concerned about what action the Bank may take in the future. On 18 Oct 2017, you stated "handing back the keys & walking away will only make matters worse" that's pretty much what I have done but it seems to contradict what you said on the 16th ( ie "chance to cut lose"). Would you mind just expanding on that please? Thanks a lot, TD.
By Cutting loose, I was referring to agreeing with the bank to hand over the property in full settlement of your loan. Hence "cutting loose"

"making matter worse ....... " I was referring to just giving the keys back with no agreement. At that time the UK was in the EU and so they could have persued you in the UK .

Now with Brexit, I don't know if the EU wide enforcement is still active.

Given all this happened over 5 years ago, I'm not sure what you are trying to achieve?
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