Can Debt in France be included?

[Drowning Fast]

If we sold below the outstanding mortgage debt we owe to the bank in France could this debt be included in an IVA?
Prices have dropped drastically in France due to Nicholas Sarkozy and the general recession over here, which has resulted in a lack of interest plus a massive drop in prices.[?]

[MelanieGiles]

If there is a shortfall on the sale of your French property, this can be included in an IVA.

[Drowning Fast]

Does that mean that the French bank becomes involved? As I wasn't sure how this EU communication works, if at all.

[MelanieGiles]

Yes - the French bank who are suffering the shortfall (assuming that they allow you to sell your property in the first place) will become a creditor in the IVA.

[Drowning Fast]

Their shortfall would be minimal as the outstanding mortgage currently is 50k Euros and would expect to get not far short of this amount depending on how much notaire and 5% estate agents fees are taken.

[MelanieGiles]

Are property prices actually falling in France?

[Drowning Fast]

Apparently so. The Estate Agents told us that the market has been dreadful since last summer. The house is a restoration project so there is still lots of work to do on it. Not sure if that would affect it also. When we bought they could not find enough of these types of property. Possibly with the fall of the Euro making this more expensive and the removal of health insurance if you don't work could have contributed to this. Two of our friends have had their houses on the market for a year with only a couple of viewings, but they weren't prepared to lower their price.

[ray_a]

Interesting point the French have suffered badly in the Euro as their interest rates are very high and they are not allowed to cut them.

Agree about the UK pound falling against the Euro!

[Drowning Fast]

Ideally I would prefer to sell the house in the UK as I have no wish to stay here once I retire (in fact I would move tomorrow). We would happily live in a cheap old rented property than give this up. The property may not be worth much to most people but to me it is our future. The French are much stricter with their money (well it does appear so) and they do look after their OAPs with good pensions. The mortgage we got was much better than UK. It was fixed for the life of the mortgage at 5.5%. Their mortgage protection is cheaper than ours too. Suppose you can tell I hate being English.