Description

Many investors now find themselves in a situation where they wish to restructure their agreements with their mortgage holders and or their construction company. We are committed to insuring that your case for a restructuring is presented in a professional manner and that every effort is made to insure that your objectives are attained

Many investors now find themselves in a situation where they wish to restructure their agreements with their mortgage holders and or their construction company.

This includes off plan buyers of Bulgarian property where completion is due and who now cannot raise the required mortgage due to the credit squeeze or buyers whose developers have failed to complete construction on time or investors who need to to sell because they can no longer meet their mortgage repayments due to their overall financial situation.

We are committed to insuring that your case for a restructuring is presented in a professional manner and that every effort is made to insure that your objectives are attained.

The types of agreements we renegotiate include:

  • Mortgage Agreements
  • Off plan Property purchase agreements
  • General Business Contracts
  • Rental Agreements
  • Leasehold Agreements
  • Loan Agreements

If you are facing difficulties in meeting your mortgage payments or other commitments in Bulgaria the worst thing that you can do is to take no action. If you find yourself in financial difficulties, the most important thing to do is get advice straight away and don't ignore the situation.

If you have entered in to mortgage or other agreements in Bulgaria putting your head in the sand and hoping that the problem will literally not “come home to roost” is no longer an option.  Your lender is able to pursue you for their money by obtaining a judgement in Bulgaria and getting a European Enforcement Order for Payment.  This is not an expensive course of action for them and while they will weight up the pros and cons of doing this they may well do it if you have a good income or equity in your home country. It is also the case that any such action by the lender could also affect your credit rating in your home country.

In the case of mortgages your lender needs to be contacted right away to begin the process of negotiating a restructuring. You need to act quickly if you want to restructure your mortgage, because mortgage restructuring is a time-consuming process.

Mortgage restructuring allows borrowers the opportunity to modify the terms of their existing loan in the light of changed circumstances. Restructured terms may include an agreement between the parties to place the amounts in default onto the loan principal allowing the borrower to recommence its regular payment. Or, it could entail an increase in the term of the borrower's current loan in order to lower monthly mortgage payments.  

In the case of off plan agreements many have been tempted to simply walk away from these agreements. Investors who do this may not only lose their deposit but could end up in a for a far worse situation, depending upon their contract.  This is a special danger as many investors actually used the developer's lawyer and therefore have a contract biased in favour of the developer. As with mortgage lenders it is also open to developers to pursue you for their money by obtaining a judgement in Bulgaria and getting a European Enforcement Order for Payment.

However in the current climate in many cases developers have shown flexibility and a willingness to reach a solution.  It therefore makes sense to enter into discussions with the developer to ascertain what the possibilities are.   A new agreement which is acceptable to you may well be acceptable to the developer.