Foreign Mortgages Hard for US Lenders

\r\nHaving a nice island retreat or a home on the coast of Spain is appealing, especially since in many foreign countries the price of a home is much less than in America right now. But it may be tricky for a buyer to find financing within the US, since most national lenders cannot cater to overseas property. US lenders have found territorial and local laws for collecting on liens difficult, and therefore do not normally offer a mortgage on foreign soil. In most cases, a lender that is local should be used when buying property in another country.\r\n

The only two exclusions to the fear of foreign lending are our border neighbors, Mexico and Canada. Some mortgage companies, normally local companies close to the border, can handle areas in Mexico, which Americans tend to buy into. Canadian lending is much the same, with both instances taking place in dollars instead of foreign currency.\r\n