A practical example

Let’s suppose that you have a debt of – €150,000
The house goes to auction and is sold off for + €90,000
You are left with a residual debt of – €60,000
To this, you need to add the estimated auction fees (court, appraiser, lawyers, etc.) – €30,000
So, not only have you lost your house, you still have to pay back the following sum to your creditors – €90,000
What is more, the debt will continue to increase due to interest and you will be on the late payers list for life


How to solve the problem

If you are only behind with your mortgage payments by a few months, you could ask for a loan to settle the late instalments, in the hope of solving the problem.
People often ask friends or relatives for money, but almost always end up creating a problem for the person who has lent you the money.

If, however, you haven’t been paying for a long time, then legal proceedings are under way and you will have to contact a legal firm who will ask you for at least €4,000 which you probably haven’t got. And you will still have to find someone to lend you the money with the same problems and risks mentioned above.

You could also try selling the property through an estate agent and then, contact a lawyer to close the position with the bank and court.
The problem with this solution is that as soon as potential customers find out that the property is mortgaged, they will look elsewhere to buy other properties that are free from mortgage.
You will lose a lot of precious time and your debt will continue to increase.

As you can see none of these three solutions will solve the problem.


What is full and final settlement?

Through the mechanism of full and final settlement, an amicable agreement is made between the debtor and the bank, in order to definitively close the debt position.
This allows the bank to clear the bad debt position and be sure of collecting a certain sum of money that satisfies it.

This agreement, however, calls for specific expertise and an agreement with the bank’s legal department.
Moreover, you will have to obtain authorisation from the court to close the legal action against you.

After full and final settlement, the mortgages on the property will be removed which can then be sold to pay the bank.

As you will have realised, all this bureaucracy must be dealt with by a specialised company that knows how to handle difficult situations like these.

However, to free the property from mortgages, money is needed, because the bank or lender wants to be paid first to give the go-ahead to the court for the elimination of the mortgage.


How we eliminate the problem of full and final settlement

As you will have realised, even full and final settlement comes with a big problem, namely, getting your hands on the sum of money to settle the debt in full.

Fortunately for you, this is what CANCELLA DEBITO succeeds in doing best.

CANCELLA DEBITO is a company specialised in full and final settlements on properties.
In short, we take care of finding an agreement with the bank free-of-charge, paying off the outstanding balance with the bank and lastly, selling your property.

So, if we don’t find a buyer willing to buy the property, we will take care of it.

Therefore, we act as a legal firm, estate agent and money lender, solving all your debt problems completely.


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