Unable to pay installments anymore due to relocation

After unemployment, my husband found a good job again - in Liechtenstein. Last year we completely moved to Austria. We were still able to keep the house in Germany, half of the repayment was taken over by my parents, who own the lower part. But now the reserves have almost evaporated. The house or rather the apartment with partial extension stands empty. What happens now - regarding the bank... do they auction it off right away? We are now also sitting far away from everything. 1-2 months still need to be bridged. Does anyone know how the bank proceeds in this case? We always hoped that the daughter would buy it, but that will not happen quickly, and we no longer need the house. Sale would also be possible, but with the financial situation it cannot be expected soon.... we cannot pay any longer for that long.

The best option would of course be if you talked to your bank. Only then do you have a 100% definite statement. But they also wait 1-2-3 months before they even do anything. And I strongly suspect that they will then do exactly that, sit down with you and see what is going on and how it can be saved.

Hello Claudia64,

if you can no longer pay the installments for the foreseeable future, you urgently need to take care of it! Everything else can only lead to further problems. As you describe, you would - with a heavy heart - also part with the house (share) if it cannot be helped. You also need to discuss this with the bank. You will definitely not be the first to move away for professional reasons and then not be able to handle the double burden of house + second apartment. In any case, you must preempt a possible pledge. Only in this way do you still have options yourself and can possibly even choose who moves into the house with your parents if it comes to that.

Without more detailed information from you (how high is the remaining debt, interest rate lock, what will the property be worth, is the property divided into your part and that of your parents or is it a single unit, etc.) everything is very hypothetical. Please note: without knowing the property and your situation exactly, only general advice can be given here.

What you could try to arrange with the bank:
1. Reduce/suspend repayment
2. If you have "terrible" interest rates, it might be possible to terminate the loan agreement and get a new one under current conditions. However, then a very hefty compensation to the bank will be due, which must also be financed.
3. Offer the bank the prospect of selling the house => Maybe the bank can assist with the sale itself. Especially cooperative banks have customer magazines in which properties are offered to customers (with allocation-ready home savings contracts)

The bank will also have to estimate which option ensures the safest return of the most money for them. An auction by the bank is definitely not always the safest option for the bank.
You will not get around having a quick and detailed meeting with the bank. Only dialogue with the bank can show you options to get out of this situation!

I think you have already tried to rent out the property share? You should also talk to your parents about the situation because they are also affected. Maybe they are willing to support you with the rental or even know people in the area who are looking for such a property.

Hope this has helped you a little

Best regards

Quite clear, talk to the bank. Are there actually no rental income from the apartment, is it empty and why? Rental income would at least ease the installment payments. Regards wabe