Buy/build a house with little equity. Open claims

Hello dear forum members,

we are also considering buying or building a house.

Unfortunately, we do not yet have much classic equity = around 35,000 EUR.

However, we still have relatively large outstanding claims against various parties:

1.) Family debts amounting to around 17,000 EUR, which we will have repaid by 2022 at the latest (contractually documented).

2.) Enforceable titles against former employer amounting to around 10,000 EUR.

Is it possible to somehow include some of this into the equity?

Are there other things that can be included there?

Many thanks and sorry for the - for some construction experts - silly question :-)

Best regards

Tim

From a layman's perspective, I would simply see it this way: What is proven to be actual equity liquidly available can be used. Likewise, any existing plot of land, if it represents the building plot. Everything else can at best be used to secure the loan.

Receivables are therefore not equity - they are not liquidly available. In the extreme case, there is nothing to be gained from them, so they are worthless. And enforceable titles only after realization of the sums - what use is the best title if it can no longer be realized due to lack of assets?
And which bank is supposed to rely on these securities? ECB maybe, all others are too cautious for that. And ECB does not yet grant construction loans...

Regards
I.

Regarding point 2: either the title is enforceable and you collect the money, then it counts because you have it in your account, or the former boss does not have the money and you will never see it, and accordingly the bank will never credit it to you. It's as simple as that.
A security or equity is only that which the bank can also make use of. A savings book, overnight money or something similar is highly redeemable, a title against an insolvent company is worthless.

Equity is what you invest. If you have the [27,000€] in cash at the time of purchase/construction and could invest it, then it is equity. If not, then the claims are considered by the bank as non-existent.

Hello everyone,

there was never any talk of the company being insolvent. An enforcement through a bailiff can take time - that is why I asked. Not a lack of solvency on the part of my former employer. My lawyer told me that such things can be delayed for a long time (6-12 months) if handled cleverly.

But thank you very much for your feedback anyway. The only thing I could still "use" would be about 11,000 EUR from a building savings contract that is not yet ready for payout...

Regards

Tim

Is it possible to somehow include any of this into the equity?

No, only what is in your account.

Off-topic: You have an enforceable title and the debtor is solvent. Why does it take longer than, say, three business days for the money to be in your account? Serious question, can someone enlighten me! (Have you already sent the bailiff?)