Paying back a mortgage loan when the loan giving bank goes bankrupt?

Christ is life - Klaus

Member

Member since 17 August 2020

Albufeira Municipality, Faro

Christ is life - Klaus

13 January 2021 20:41:39

Christ is life - Klaus

13 January 2021 20:41:39

Albufeira Municipality, Faro

Hi :-)

Can this be demanded by the bankrupty court so that people would need to sell their home if they can not repay the loan when a bank goes bankrupt?

What is happening in Austria in such a case?

Greetings
Klaus

Cynic

UK / Netherlands Expert

Member since 15 September 2015

Enschede

Cynic

14 January 2021 15:52:16

7401

Cynic

14 January 2021 15:52:16

7401

Enschede

Hi and welcome to the Forum.

Austria may have some protective laws to protect its citizens, but in general, the bankruptcy court is there to ensure that any legal aspects of a companies bankruptcy are complied with; this is normally done via an appointed Receiver who is appointed by the court to settle all the debts and liens of the bankrupt company.

Your mortgage is an asset of the liquidated company, so the Receiver will sell your mortgage to another bank and/or finance institution; how they deal with your debt will depend on the terms of your mortgage, I suggest you read the small print and perhaps look around for some legal advice.

Hope this helps.

Cynic
Expat Team