Legal Advice Needed

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fidobsa Serial expat

Member since 11 November 2011

fidobsaSerial expat26 September 2012 17:13:24

505

I have been ripped off to the tune of 3 million Forints by another British Expat. I was trying to help him as he was due to have his house in Hungary re-possessed. I agreed to lend him this money on the condition that the loan be secured against the house. He arranged for his solicitor in Siofok to draw up the loan agreement and we went to the solicitors office, signed the documents and I drew the money from the bank for him. I was a bit dismayed when the solicitor explained that we would have to do the legal stuff in 2 stages and that I would have to go back at a later date to sign the documents regarding the security against the house. This was several months ago and the loan is still unsecured. The man does not answer his phone when I try to ring him and he does not reply to emails. He answers his phone to other people and I have left messages asking him to contact me. I mainly blame the solicitor and wondered if I can report him for malpractice?

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert26 September 2012 18:07:35

12170

fidobsa wrote:
.... I mainly blame the solicitor and wondered if I can report him for malpractice?

Is the lawyer/solicitor still there? Was he actually a lawyer?

How sure are you this expat actually owned the house?

fidobsa Serial expat

Member since 11 November 2011

fidobsaSerial expat26 September 2012 19:45:46

505

Yes, I used the same solicitor when I bought my house. The seller used a different one but I wanted my own representation. I have seen a document from the bank regarding the outstanding mortgage on the property, together with an official translation. There was a query about that as it looked like he still owed a huge amount on the mortgage but the letter from the bank confirms the sum outstanding as about 1.5 million Ft.

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert26 September 2012 21:40:46

12170

fidobsa wrote:
...There was a query about that as it looked like he still owed a huge amount on the mortgage but the letter from the bank confirms the sum outstanding as about 1.5 million Ft.

You might be able to see an extract from the property register to show you have a lien over the property. The lawyer should have registered that interest in the property records. It might be taking some time to do it. The only way to find out is to ask a lawyer because the online services to find out are terrible.

fidobsa Serial expat

Member since 11 November 2011

fidobsaSerial expat27 September 2012 04:48:06

505

He can't register an interest until the owner and myself sign the documents so such a record does not exist.

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert27 September 2012 06:57:15

12170

fidobsa wrote:
He can't register an interest until the owner and myself sign the documents so such a record does not exist.

Wasn't the money placed in the lawyer's client account?

I would have thought the lawyer would have the money in his/her client account until such time as the contract was signed.

fidobsa Serial expat

Member since 11 November 2011

fidobsaSerial expat27 September 2012 08:20:15

505

No, I suppose it should have been done that way and the lawyer should have used the money to pay the outstanding debts. He said he could not do the security on the house until the debts to gas and electricity companies were paid. It was actually the gas company that were wanting to take possession of the house, not the bank.

fluffy2560 Hungary Expert

Member since 21 July 2009

fluffy2560Hungary Expert27 September 2012 19:07:33

12170

fidobsa wrote:
No, I suppose it should have been done that way and the lawyer should have used the money to pay the outstanding debts. He said he could not do the security on the house until the debts to gas and electricity companies were paid. It was actually the gas company that were wanting to take possession of the house, not the bank.

Ok, so what did he (the lawyer) actually do with the money? Or did the dodgy expat have it directly in cash, with no receipt, no passport copy and no contract?

montvai New member

Member since 08 July 2012

montvaiNew member10 October 2012 19:02:30

Hey, I would like to help you, would you please send me a private message and detail the case as much as you can (with name of the solicitor and everything, I can have a look who is presently the owner of the property and so). I am Hungarian and will be qualified as a lawyer soon.

fidobsa Serial expat

Member since 11 November 2011

fidobsaSerial expat11 October 2012 06:06:16

#10

505

Thanks for your kind offer, montvai, PM sent!

szocske Serial expat

Member since 24 December 2009

szocskeSerial expat14 October 2012 13:51:49

#11

839

I am not a lawyer, and this is not legal advice.

Still trying to piece it together, but your lawyer definitely failed to protect your interests...

Was there a mortgage loan on the property you wanted to involve as security? AFAIK banks insist on having a 100% lien of the property even if the loan is much lower than the expected sale price of the property. (thus there is no second mortgage market, only refinancing)

The discrepancy between the bank documents you saw might have been between the capital owed (which is normal) and the sum of the missed down-payments with extra interest.

These two things together mean you had no chance of securing your loan until the bank loan has been paid in full, the lawyer knew that, and left you believe the opposite.

montvai New member

Member since 08 July 2012

montvaiNew member14 October 2012 15:38:33

#12

I am sorry szöcske, but what you do not know well, I believe that you want to help though.

When there is a mortgage loan on the property you still can have your own, just on second place after the bank.

I had a look on the documents, and working on figure out what has happened and what to do.

szocske wrote:
I am not a lawyer, and this is not legal advice.

Still trying to piece it together, but your lawyer definitely failed to protect your interests...

Was there a mortgage loan on the property you wanted to involve as security? AFAIK banks insist on having a 100% lien of the property even if the loan is much lower than the expected sale price of the property. (thus there is no second mortgage market, only refinancing)

The discrepancy between the bank documents you saw might have been between the capital owed (which is normal) and the sum of the missed down-payments with extra interest.

These two things together mean you had no chance of securing your loan until the bank loan has been paid in full, the lawyer knew that, and left you believe the opposite.

szocske Serial expat

Member since 24 December 2009

szocskeSerial expat14 October 2012 17:34:43

#13

839

OK, and do you need the consent of the first-place lien-holder to register a second one? Do residential loan contracts not forbid you from registering one? And by forbid I mean if you do it the contract is off and you owe the full balance immediately subject to punitive interest rate?

Lesley&Yan Active member

Member since 11 October 2012

Lesley&YanActive member15 October 2012 11:34:39

#14

Phil your doing better than us the house would be a pile of bricks now had it been done to us ..good luck hun hope to get over to see you soon send me your addy in pm pls x
lesley

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