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About no1paultaylor1975

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    HPC Newbie
  1. Can A Polish Bank Repossess My Uk Home?

    Guys, THanks for your comments. I have got a Polish Lawyer. There were a lot of questions in the first response and I have all the answers, it's just that in the post I wanted to only put in what I thought were the most important relevant points. The crucial document here is something called the "assigment agreement". This was signed by our lawyers on our behalf. It is a condition of the mortgage. The document confirms that we hand our rights over the property to the bank. The place hadn't been built at the time, but we signed over our rights attached to that property to the bank, as collatoral against the loan. However, it is just one form of collatoral. They can choose to go after anything else to recover the debt, technically. That is one thing that really gets my goat. Now, the developer doesn't want us to walk away from the final agreement, obviously. They are treatening court action to force us to conclude the final agreemnet, but they are genuinely in the wrong. We were in the right to withdraw because the thing wasn't anywhere near ready in time. We threatening them with court action to return our money, which they are just not doing of course. The thing is, technically, the full amount paid for the apartment is due to go to the bank, not to us, because of this assignment agreement. As our lawyers put it, they are not our "receivables". The money should be paid by the developer to the bank, then credited to the loan, then we should get the remaining amount. How much is due back to us is under debate. We believe we are definitely due 110% of the purchase price. The developer would probably say 90% (with us paying a penalty because we "pulled out") or the minimum they can possibly get away with in truth. The developer is getting quite a name for itself in relation to very dodgy tricks and behaviour. They will stop at nothing to grab and keep every single penny. The polish legal system is like that in a banana republic. This is apparently common knowledge, and polish lawyers acknowledge it. There is loads of curruption, inconsistent decisions, and it takes ages for anything to actually get to court. The developer also knows this. Nobody advises doing anything through the polish courts. More interesting points: Our bank (our mortgage lender in Poland) is also the bank that financed the development. Our Lawyer also represents the bank For these reasons we have to worry about a conflict of interest on the bank's part (The developer is a far bigger and more important customer to the bank than we are). Also in terms of our lawyers, they have told us that they cannot represent us, or even advise us about, any dispute or potential dispute with the bank, because the bank is a client of theirs. We are currently putting pressure on the bank to recover their debt from the developer. I have made the decision pretty much that I am not going to make another payment against that mortgage. Our argument to the bank is "we signed the assignment agreemnet. We have now withdrawn, lawfully, from the preliminary agreement. The full amount that the developer has received is therefore due to be paid back to you (with the part remaining after the loan due back to us. The money is there with the developer, and you should be recovering it from them. As far as we are concerned, we are not your debtor anymore, the developer is (and they also owe us money that we are banking on you to recover from us)" I think that our position is very reasonable. We cannot keep making interest payments on money that the developer should have paid to the bank, and the bank should now be taking real steps to recover. I am quite hopeful that in the UK given a similar situation our position would be seen as reasonable. If the bank got a judgement in Poland, then I don't know how or what the system is for enforcing it here in the UK. The thing is, we don't have cash, only our heavily mortgaged house and two other BTL's both with mortgages. Those other lenders have their claws on the other properties, so there really is nothing in the UK for the bank to claim. Surely we would be able to defend ourselves in an English court...? I can't even find an UK lawyer who can advise on this sort of thing - hence the original post.
  2. Hi All, Any feedback on this subject would be appreciated. Back in 2007 we signed a preliminary ageement to purchase an off-plan property in Poland. We paid a deposit, and obtained a mortgage. The mortgage has been all paid to the developer and the developer has received the full amount they are due. However, one of the conditions of final handover was that the developer produce (by the end of 2008) a final use certificate for the building and the apartment. They didn't do this, so we served notice that we were withdrawing from the preliminary agreement (entitling us to a full refund plus a 10% penalty). We've been waiting for that money for over two months now, and meanwhile we have had to continue paying the mortgage in Poland. We are waiting to learn from the bank it's position on this issue, and what precisely it is going to do to recover the money from the developer. Here is the crazy bit: The "building contribution" (every penny the developer has received) was signed over to the bank (using an "assignment agreement") as security for the loan. This means that the developer has to pay that money to the bank, not to us. We have no right to demand that money. As for the bank, that apartment is only one form of collatoral that they have access to. In theory, the bank in Poland can choose to not recover the money from the developer, and instead come after our assets in the UK, although our house is heavily mortgaged here anyway and I am sure our UK lender might have something to say about that...Here are my questions: -Would the polish lender realistically have any chance of touching our UK assets or credit rating in a situation like this? -Would we be pretty safe to just say "sorry bank. we are not paying any more, we suggest you recover this money from the developer"? In theory we should receive quite a bit more from the developer on top of the mortgage amount, but the legal system out there gives us no confidence that we could actually recover it through the courts. If we get just 100%, or even 90% of what we paid, we will probably have to just accept it. The main priority is for us to lose the mortgage, as the monthly payments are really quite significant. Any insight or feedback would be most appreciated. Regards Pul