Questions & Answers
Expected legal actions for defaulting on a bank mortgage
I have a property mortgage loan that I have paid for its instalments over more than 3 years without any failure. However, due to my financial situation, I will not be able to pay any more, because my income turned to zero.
I need to know the legal actions they can take against me.
Dear Questioner,
Did you submit any cheques as a guarantee to the bank?
If yes, they are entitled to submit the cheques to the bank.
In this case, the cheques will become bounced, they will file a criminal case against you and your name will be on the UAE travel ban list and you will not be able to travel unless you settle the case or wait for the prosecutor's decision.
If the amount is more than AED 200,000, the prosecutor may issue a jail decision against you. The Bank is entitled to open also a civil case against you to recover the money.
I suggest having a meeting (bring with you all the contracts signed with the bank) to see how we can help you with this issue.
I am looking forward to your reply!
Regards,
