Cyprus Law | Stealth Mortgages


Cyprus Law – Stealth Mortgages

Stealth Mortgages are the anathema that has raised its extremely ugly head on the island of Cyprus.

That the mortgage existed and was allowed to remain in place by the vendor and the lending source is a disgrace. Far outweighing this though is the fact that the vendor knowingly sold the property to unsuspecting purchasers taking it into the realms of fraud. Compounding this deliberate illegal act is the legal system that allows it and the negligent lawyers/advocates who fail to contact the land registry and discover this crime BEFORE completing on the transaction and parting with their client’s money.

Of course the lawyer/advocate is not to blame for those mortgages taken after selling the property, although the act of applying for a loan on property they no longer own is only possible with old fashioned systems in the purchase procedure and lack of due diligence by the lending sources.

There is also  of course the mortgage rates that have escalated because borrowers opted for a mortgage in a foreign currency. Why on earth anyone would do that is a mystery to me. However there may be some recourse to law for those who now find themselves in a situation where the fluctuating rates charged by foreign lenders is making it impossible for them to afford the repayments:

I must admit my sympathy is less with those who entered into a mortgage not really understanding the implications and more with those who paid in full and are now expected to repay a debt for someone they have already paid in full. A mortgage they had no knowledge of and were never made aware of until it was too late.

In a civilised community this would not and could not happen.

Never give in never give up.

Pauline Read

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