View Full Version : Can we be chased by the bank after arranging a Dacion en Pago?

Lawbird Lawyer
07-21-2009, 01:35 PM
Dear Sir/Madam,

The whole point of following a "dación en pago", which should be done always as a last resort, is precisely to waive being chased by your lender.

In your case, you have not followed a dación en pago.

What you have done is given Power of Attorney to your lender to sell your property on your behalf to a third party as a distressed asset (BMV).

But what happens if your lender is unable to find an interested purchaser in your property? That they will eventually repossess you. They are clearly hinting at this on their last phrase.

What happens if they actually do find a buyer but they sell the property below what you owe them? That you will still be held liable for the balance outstanding.

Which is exactly why in the article I wrote on the Dación en Pago Explained (http://www.marbella-lawyers.com/articles/showArticle/spanish-mortgage-dacion-en-pago-handing-keys-bank) I point that you don't need a lawyer to follow it albeit I highly recommend one is retained so as to avoid problems such as the one you are having right now.

Your bank is not doing a dación en pago, they are actively seeking a buyer to sell your property on as a non-performing mortgage. A dación en pago means it's the lender himself whose taking on your property and in exchange discharging in full your mortgage liability.

If I were you I would act hastily and appoint a lawyer to act on your behalf or else you run the risk of your bank repossessing you. This is clearly surmised on their last line:

"And always bear in mind that the decision to buy the property and sign the mortgage has been taken by yourself, you have to be ready to accept the consequences".

Yours faithfully,
Raymundo Larraín Nesbitt

07-21-2009, 02:53 PM
Hi There We recently completed a Dacion En Pago in Campoamor Spain in March. Since then we have been having letters saying we are overdrawn etc etc. We have had a e mail from the bank confirming we are at peace with them but since requested more clarification as we have had more letters since. See the response below recieved today:

As you can understand these letters are not coming from the Branch in Campoamor, they're automatically generated in Madrid. You left the power of attorney and the keys of the property, but it does not mean that the property is sold and the mortgage is already cancelled. I understand you're concerned for the letter you receive but it takes time to get out from this situation. We're not calling or sending you lawyers to require payments, because we accepted to try to sell it before it went repossessed, you know how is the economic situation all around Europe, it's not easy to find buyers, you have to be patient. And always bear in mind that the decision to buy the property and sign the mortgage has been taken by yourself, you have to be ready to accept the consequences.

I thought a dacion en pago meant that we are now free of the mortage now but the content above sugguests different??? Obviously we are very concerned and request advice on the situation and a way forward please. Your assistance in this matter is greatly appreciated.

01-20-2010, 03:22 PM
hi there,
i was wondering if you had any luck with your dacion, as we are in the same situation - the bank have agreed to try and sell the flat and we stop paying mortgage for two years while they try and sell it. we would rather dacion so we can be rid of it, so might push for this instead. thanks for any advice!