Mortgage Problems in France

Are you worried about a French mortgage debt?

Difficulties with mortgage payments

Many French properties are bought using mortgage loans and when owners have difficulties paying the mortgage, the situation can deteriorate rapidly.

Failure to pay your mortgage instalments can allow the bank to claim repayment of the full amount of the loan, and then force a sale of your property at an auction which takes place at the court.

Auctions before the court are a great risk for the owner, as the properties are often sold at well under their market value – still leaving the owner liable for the balance of the loan.

Do not ignore the problem – be proactive.

If you are having difficulties paying your mortgage, the most important advice we can give you is not to ignore the difficulty but to have an open dialogue with the bank and generally to be active in the search for solutions.

Starting the dialogue early can make all the difference, even in difficult cases. Judicare can help you to explain your situation to your bank or do so on your behalf, in order to help you show good faith in attempting to find solutions. Provided the case is dealt with at an early stage it may be possible to agree an instalment plan.

Even if the bank is not prepared to continue with the loan agreement, it may be possible for you to refinance the loan with another bank. In this case we can help you prepare your plan for refinancing, whilst agreeing terms with your initial lender which will give you a breathing space to explore all possibilities for a new loan.

If proceedings for a forced sale have been started, it is vital to be represented as soon as the procedure begins, as certain arguments, defences and solutions can only be used in favour of the property owner at the initial stage of the proceedings.

In particular, if a property has to be sold, it is possible for the owner to sell voluntarily, either with the consent of the bank or with the authorization of the court, thus maximising the chances of repaying all the mortgage debt and preserving equity.

Are you being pursued by a bank or debt collectors for an old mortgage debt?

Property owners are often under the mistaken impression that if a French property is sold, their liability for the payment of the debt ends.

This is not the case. Sale of the property by the bank is just one way of obtaining payment of the mortgage debt and the bank may pursue the borrower for payment of the balance of the loan even after a forced sale.

Owners may find themselves being pursued for payment even outside France. We are aware of claims pursued in England by banks and even by third parties (often investors) to whom banks have transferred their portfolios of mortgage debt.

If you are being asked to pay an old mortgage debt, particularly after a forced sale of your property, it is essential to take advice immediately – and before responding to any demand – to see whether the claim is valid. A proper review of your case may result in the availability of complete defences to the claim against you for the whole of the remaining balance of the mortgage.

At Judicare, we can advise and assist you as a matter of urgency:

-  if you are having difficulties with mortgage payments

- if there is threat of forced sale or

- if you are faced with a demand in relation to an old mortgage debt.

Our team can also manage court proceedings throughout France and help you to explore solutions for sale otherwise than at a court auction if a sale is inevitable.

The quicker you act the greater the chance of a successful outcome.

If you would like to discuss your case or simply would like more information on our fixed fee approach one of the team will be happy to take your call on a confidential basis at 01438 840258 or via email to