We work with a team of experts, some of whom have specific knowledge in the organization of mortgage retention contracts, and we can provide strategic advice if you have received a 100% withholding mortgage. Talking with one of them can help you find the best solution, and potentially save time and money on your mortgage. The trial court recognized the consumer`s right to retain and his priority over the mortgage. However, the mortgagee appealed and the trial court ruled that the mortgage should take precedence over the consumer`s demand, since the change in sola was only effective between the parties. The consumer then appealed to the Supreme Court of Portugal. The problem is that you then have to find a way to finance the amount of the deduction to complete the purchase, and you also have to find the money to finish the work on the property, in addition to the deposit for which you have already saved and all the other costs related to the move. If you have already reached your limit compared to what you have stored, this could mean that you have to delay the move to save more, or it could even mean that you will miss the property. In addition, the Portuguese Supreme Court also indicated that the decree, which extended the right of detention to the situation analysed in 1986, explicitly states that it is reasonable to give priority to them in the event of a conflict of interest between mortgage creditors and consumers. This stems from the logic of consumer protection and the fact that consumers are generally the most vulnerable parties in these contracts, because they generally invest their savings in real estate and go into debt for many years. On the other hand, the mortgagee, usually a bank, has economic, legal and logistical advice to more accurately assess the risks associated with them and to carefully consider whether loans should be granted. The main problem with mortgage deductions is that if you decide to make the purchase, you may have to make up for the shortfall and find ways to complete the work, which is source money that may not be readily available. In the end, if you can`t come up with the amount of the deduction and both the lender and the seller refuse, then you can lose the property.
A final way to cover the deficit is to borrow the money elsewhere, either to borrow, to put it on a credit card, or perhaps to a family member. The risk is that you run the risk of overburdening your finances as a critical time – if you borrow a new mortgage. But it can be a practical solution — and avoid losing the house — because it should only be for a short period of time. In the summary of the decision of the Supreme Court of Portugal, it is stated that the consumer buyer, in a contract that is not valid vis-à-vis third parties and who has paid a deposit if the liquidator does not fulfil the contract, has the right to retain in the context of an insolvency proceeding. While lenders can in principle agree on value, once the survey is completed, they may decide on a mortgage deduction and keep certain funds until other work. Finally, they must ensure that the property is a sufficient guarantee for the loan.