Cyprus Property Forum for Buyers, Sellers & Investors

FAO: Nigel Howarth

Dear Mr. Howarth
I have a close friend who needs help or advice about his loan to Alpha Bank for 2 properties which have never been properly finished and are without any title deeds of course.
He has not been paying his mortgage for the past 2 years or so, as a result of apparent collusion between the developer and the bank. The bank advanced all the money to the developer without checking if the work was done. Also, the development that the properties are in have a developer mortgage on them with the same bank, and which my friend was never made aware of.
In the meantime, the Alpha Bank have been lumping on huge surcharges onto his mortgage arrears and the current balance is far higher than what the properties are actually worth.
He has tried to negotiate something with the bank but to no avail.
I told him that there is a current deadline of 31st December that he must get his claim into the bank before they can get a judgement against him in Cyprus which they could then enforce in the UK where he lives and where he has other properties in his name.
He is very worried about the situation and has asked me what he should do now and I'm not sure what further advice to give him on this?

Please can you let us have your advice on this situation and what he should do now?

Many thanks if you can help.

John

Hi John

If the loan's in CHF, I suggest that your friend gets in touch with one of the legal groups - contact me via http://www.news.cyprus-property-buyers.com/contact and I'll pass on their names & contact details.

Regards,

Hi John

I replied to your email on 12th December - and I've just replied to your PM

Reards,

Hi Nigel,
Thank you very much for your emailed reply, which I've replied to you on privately.
Just to add, his loan is not in CHF. It was done in Euro, though I'm not sure this makes any difference to my friend's situation. Or maybe it gives him less of a chance of succeeding, but hopefully not?
His case is that he was mis-sold the properties by: by not being finished properly to specifications sold, that there is a developer mortgage on the project/land which he was not told about, and that the bank advanced all his loan to the developer before work was completed which resulted in the final work never getting done, in addition to the work already done being of a very bad quality. Also, the communal work for the development was never finished properly.
With a developer loan on the project which is likely to never get paid back, is it true to say that his properties will never get title deeds? And in effect, will the properties then be unsellable?


Regards

John

Hi John

I've sent you another email.

Regards,