MADEIRA PROPERTY MARKET NEWS

HOW TO AVOID HAVING YOUR PROPERTY IN MADEIRA REPOSSESSED BY YOUR LOCAL BANK:
The global and local recession and low property market prices have resulted in many families handing over their properties in Madeira to the banks.
New legislation is in place allowing property owners certain rights to renegotiate their existing loans with the banks.
1. Inform the bank immediately of a possible default.

2. On the 1st payment default, banks normally have 15 days within which to inform you in writing of your default; thereafter between 31 – 60 days from the date of the 1st default again, prior to your case being taken to a procedure of renegotiation called “PERSI” with the objective of reaching an agreement between yourself and the bank without having to resort to court and litigation.

3. The bank evaluates your financial situation and will ask you for proof documentation thereof which has to be handed in within 30 days of lodging documents with PERSI.

4. The bank will then make a proposal to regularize the debt and you, as the client, will have 15 days within which to either accept or make a counter proposal.

SOME USEFUL ADVICE:

  1. Never ignore the debt
  2. Apply to have your instalments reduced
  3. Ask for an extension of time limit for the loan period, (eg. From 20 years to 30 years )
  4. Pay interest only for an agreed period of time
  5. Pay capital and interest towards the end of the contract

For all those planning on selling property in Madeira and need a free market evaluation, please contact us – we would love to hear from you.

For those planning on buying property in Madeira, now is the right time to buy!

About Author: Tony Nobrega

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