The house belongs to the bank, but they do not claim it, grandma lives in it

What does it mean that the loan is gone?

Normally it goes like this: go to the bank, agree on a loan, use the house as collateral, register everything in the land register, the bank provides the money, the bank account shows a big negative balance.

Now the bank has paid the money to your grandparents, they gave it to the relative, and he ran away?

If that is true, the money is gone and your debts are still there. The bank usually charges monthly interest on the loan based on the outstanding balance. If you are currently not repaying, the interest remains high. If you are not paying any interest at the moment, the outstanding balance increases.

Depending on the loan agreement, the bank can take measures if payments (interest and possibly repayment) are not made, e.g. take possession of the house. But it does not have to do so. For example, the bank could be kind-hearted and let your grandma live there. Or your grandpa may have arranged something back then, so that the bank now keeps quiet until your grandparents pass away (which is why he might have said you should not contact the bank).

How do your grandparents’ and your mother’s accounts look? Are there withdrawals going to the bank for interest? You probably do not have online banking with access to the outstanding balance? As far as I know, banks have to send an annual account statement showing the balance. What does it look like? Does the outstanding balance increase every year by the amount of the interest?

No one will have done anything to the land register, the bank certainly has not taken itself out of the land register. According to the legal situation, I suspect you still own the house! However, if the claims are not met, the bank has the right to seek a foreclosure, which can lead to the loss of the house. But before that, alternative payment plans have to be discussed; the bank also has a duty of care towards you under the law. That means no one can just show up tomorrow and say that’s it. Instead, there must first be discussions with the bank explaining the situation. This is where it gets serious.

If only your grandma were involved, I would say wait and renounce the inheritance. But your mother is involved too, that makes it difficult. Depending on how bad it could get, I also think of the term private insolvency for your mother. I believe consulting a lawyer here would be advisable.

You can wait until you hear something from the bank. But I would definitely inform yourself about the legal situation before that. Letters from the bank etc. should definitely not be ignored. So if your grandma throws away the letters and does not tell you anything... then someone could stand at your door tomorrow...

what does it mean that the loan is gone?

Normally it goes like this: go to the bank, agree on a loan, list the house as collateral, register all that in the land register, the bank makes the money available, the bank account shows a big negative balance

Now the bank paid the money to your grandparents, they gave it to the relative and he ran away?

If that's true, the money is gone and your debts are still there.
The bank usually charges interest on the loan monthly based on the remaining debt.
If you are currently not paying down the principal, the interest remains high.
If you currently don't pay interest, the remaining debt grows.

Depending on the loan agreement, the bank can take action if payments (interest and possibly principal) are missing, e.g. take possession of the house. But they don't have to do that.
For example, the bank might be kind-hearted and let your grandma live there. Or your grandpa did something back then so that the bank now keeps quiet until your grandparents pass away (which might be why he said you shouldn't contact the bank).


What do your grandparents' and your mother's accounts look like? Are there withdrawals going to the bank for interest?
You don't have online banking access to check the remaining debt, right?
As far as I know, banks have to send an annual account statement showing the account balance. What does that look like? Does the remaining debt increase each year by the amount of interest?

No one will have done anything to the land register, especially the bank will not have removed themselves from it.
According to the legal situation, I suspect the house still belongs to you!
However, if claims are unpaid, the bank has the right to initiate foreclosure, which can lead to loss of the house. But before that, alternative payment plans must be discussed, as the bank also legally has a duty of care towards you. So no one can just show up tomorrow and say that's it. There have to be talks with the bank that clarify the situation to you. This is where it gets serious.

If only your grandma were involved, I would say wait and renounce the inheritance.
But your mother is involved too, that makes it difficult. Depending on how badly this could end, the term personal bankruptcy for your mother might come to mind.
I think a lawyer consultation would be sensible here.

You can wait until you hear something from the bank. But I would definitely inform yourself beforehand about the legal situation. Letters from the bank must not be ignored under any circumstances.
So if your grandma throws the letters away and doesn't tell you... then someone could stand at the door tomorrow...

Please read my last post on page 2, then many of your questions will be unnecessary. It also says that ONLY the house was put up as collateral. So the bank can't go after any money from my grandma or my mother. The loan was probably paid directly to the respective person and my mother and grandma only put the house up as collateral...

Again, as I already wrote: I am still very unclear about the facts at the moment, I recognize that. That's why I first have to gather more information, but I will definitely only do that sometime after my grandpa's funeral.

Until then I can't contribute anything meaningful here. But as soon as I can, I will report further as requested.

Regards
Specki

Please read my last post on page 2, then many of your questions become unnecessary. It also states there that ONLY the house was provided as collateral. So the bank does not have access to the money from my grandmother or my mother. The loan was probably paid out directly to the respective person and my mother and grandmother only provided the house as collateral...

Again, as already mentioned: The situation is still very unclear to me at the moment, I realize that. That is why I first have to gather more information, but I will definitely do that sometime after my grandfather's funeral.

Until then, I cannot contribute anything meaningful here. But as soon as I can, I will continue to report, as requested.

Regards
Specki

What Kaspatoo says is indeed correct.

1st step: Check grandmother’s bank statements to see if the loan, incidental costs, or possibly rent are being deducted.
2nd step: Contact the borrower and ask if he receives bank statements for the loan and can clarify things for you?
3rd step: Inspect the land register, request an uncertified copy from the land registry office (costs 10 €), and see who the owner is and if there are still entries of land charges (including right of residence).

These are 3 very, very quick measures WITHOUT the bank getting wind of it here.

What amounts (order of magnitude of loan/value of the house) are actually involved?

I think you are completely missing the point here. Let Specki review the documents first before giving "tips" like the mother’s personal bankruptcy, who (as long as the grandmother is alive) has nothing, absolutely nothing to do with the house.

My assumption: The loan is not even in the grandmother’s name, but in the other guy’s name and that’s exactly where the bank gets its payment from.

Step 1: Check grandma’s bank statements to see if credit, additional costs, or possibly rent are being deducted

NO, I already said that

Step 2: Contact the borrower and ask if he can get bank statements for the loan and clarify things with you?

Didn’t I mention that he ran off? He fled somewhere abroad, no one knows where he is...

Step 3: Inspection of the land register, request a certified copy at the land registry office (costs €10) and see who the owner is and if there are still land charge entries (including the right of residence)

I have already said several times that I will do that once things have calmed down a bit.

I can only say again that continuing the discussion makes no sense at the moment because I first need to clarify the situation... and that will take a few weeks.

Regards Specki