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Electron
05-02-2013, 05:51 PM
I live in Vera, Almeria and work full time, fully on the Spanish system for tax and health.
Now, after 5 years, I am struggling to make the mortgage payments, currently have 158,000 outstanding and have about 60,000 negative equity, just switching to a second period of interest only payments for next 2 years.

There is little hope of selling for more than 90,000, even in 2 years time.
I would prefer to sell at 90,000 move to a rental and repay the bank the negative equity without having a re-possession.

Is there any precedent for doing this, I know the bank will not be keen to give such a large unsecured loan, but the difference in the mortgage+IBI+life insurance+house Ins+BASURA+Community fees versus rental expenses would make it quite easy to afford.

Patricia
05-10-2013, 03:25 PM
Hello Electron,

Your suggestion is totally negotiable with the bank and seems viable. The first step would be to ask your bank if they would be ready to accept to keep a mortgage for the negative equity, relieving the property of charges. The bank will of course be free to accept it, and they cannot be forced.

I recommend you to have fluid communication and a cordial relationship with them, as the negotiation is viable but subject to an agreement between both parties.

Regards,