Hi all,
I have a friend who has been trying to sell his apt. in Panama city for a couple of years now. She bought at the worst time, around 2011, and got a mortgage on it from a Panamanian bank. She lived in it for a couple of years, and then left due to a job transfer.
She was renting it out for a while until the building started leaking all over the apt. (from other apts.) and the renter left as a result. It took over a year to get it all fixed (because some neighbors denied the leak was coming from their apts.) and then to fix all the damage.
It was then (as everyone knows) prices have crashed for P.C. apts. and she is now underwater with little chance of finding a buyer. She doesn't want to rent it because it won't come close to the monthly expenses (rental prices have also crashed) and she wants it available for showing quickly if someone is interested.
She's still sending money to Panama every month to pay the mortgage, building fee. and insurance for an empty apt. But it's becoming unsustainable. After being for sale for the last 2 years, she's just been told that it's leaking again, so she'll have to go through the whole process with the neighbors again apparently.
She's pretty distraught and is thinking about just walking away from it and never returning to Panama. She asked me for advice and I told her I'm not sure what would happen if she did default in Panama. Would she be prosecuted if she did return? Could she declare bankruptcy in Panama? Would she be able to return to Panama without legal issues?
I'd appreciate feedback from anyone with actual knowledge/experience about what happens when someone defaults on a mortgage in Panama. Thanks in advance.
I have a friend who has been trying to sell his apt. in Panama city for a couple of years now. She bought at the worst time, around 2011, and got a mortgage on it from a Panamanian bank. She lived in it for a couple of years, and then left due to a job transfer.
She was renting it out for a while until the building started leaking all over the apt. (from other apts.) and the renter left as a result. It took over a year to get it all fixed (because some neighbors denied the leak was coming from their apts.) and then to fix all the damage.
It was then (as everyone knows) prices have crashed for P.C. apts. and she is now underwater with little chance of finding a buyer. She doesn't want to rent it because it won't come close to the monthly expenses (rental prices have also crashed) and she wants it available for showing quickly if someone is interested.
She's still sending money to Panama every month to pay the mortgage, building fee. and insurance for an empty apt. But it's becoming unsustainable. After being for sale for the last 2 years, she's just been told that it's leaking again, so she'll have to go through the whole process with the neighbors again apparently.
She's pretty distraught and is thinking about just walking away from it and never returning to Panama. She asked me for advice and I told her I'm not sure what would happen if she did default in Panama. Would she be prosecuted if she did return? Could she declare bankruptcy in Panama? Would she be able to return to Panama without legal issues?
I'd appreciate feedback from anyone with actual knowledge/experience about what happens when someone defaults on a mortgage in Panama. Thanks in advance.
