Mortgaging your Bulgarian home for someone else's loan

You may mortgage your own property for another person's debt, but the creditor can enforce against it if the secured obligation is not paid. A family relationship changes none of that. Even an only home is not protected against the mortgage creditor enforcing its secured claim.

Check every capacity in which you sign

Granting a mortgage for someone else's debt does not necessarily make you personally liable for the entire loan with all your assets. Signing additionally as a co-debtor or guarantor creates a separate personal-liability issue. One document's title is insufficient: read the complete agreement set.

A family promise does not bind the lender

The borrower's promise that your property will never be affected does not restrict the creditor. Check secured amounts, interest, costs and arrangements for changes to the loan. Establish how you can learn of arrears before enforcement papers arrive.

The law provides rights for an owner who pays or suffers enforcement for another person's debt. However, recovery from the borrower also depends on available assets. A right to reimbursement does not guarantee actual payment.