Bank Repossessions in Spain: A Legal Perspective
I have tried since Feb to tell my Spanish bank we are in trouble - my tenants left and we had a lot of repairs/debts to pay. They would not reply to emails or calls and eventually I had a call from IPP Global in May who advised me to go for a Dacion En Pago. I paid them €1500 (on credit card) initial deposit (total will be €3500) and nothing happened. I have chased them to progress the Dacion as I was trying to keep my mortgage up to date by using my credit card in UK and sending most of my wage to service my mortgage in Spain. Last week my Spanish bank told me they would repossess my Spanish and English houses as I had defaulted - I thought the Dacion had been instigated after 3 months but IPP were still not moving. I have maxed out my credit cards and I sold my car to pay last months mortgage as I am terrified of losing my house in England. I still have no idea if the Dacion will proceed, I owe community fees and on advice I paid for a re-decoration to try and get the place rented again. I am at the limit of what I can cope with, it seems that in Spain people prosper only due to others misfortune. I have done everything I could to try to get out of this and save my home in UK - now it seems I am to lose the lot - what would you advise now?
Bank Repossessions in Spain: A Legal Perspective
Hi. I am a gaurantor for 2 houses being developed in Majorca, this started around 4 years ago. My sister is on the deeds with me as a gaurantor, but i have just learnt that in case of repossession my UK assets are also liable via this thread, which i was told otherwise at the time. The numbers are good, its just we are unable to complete the houses. The mortgage and recent valuation gives €275K equity, but €100k needs to be spent to finish them and that is the stumbling block. There is also collaterol on my sisters property of €150k equity. So there is enough there if come repossesion before they reach me.
We have an interest only mortgage that expires in Janaury, which is when I see the big problem arising, as at the moment we have not fallen behind.
There are plenty of persons wanting to rent them, but as they are unfinished we are stuck.
If we are unable to find the funds to complete and the worst happens, would selling my UK property or handing over to a family member be wise before the worst happens.
We are also considering a 'dacion en pago' again if worst happens and with the equity I am hoping maybe accepted.
My main concern is my UK property and what I should do to avoid this being touched.
Thank you in advance.
Bank Repossessions in Spain: A Legal Perspective
Around 2 years ago i stopped paying my mortgage in Spain even though i could afford it as i could see what was happening with the ecconomy. I have tried many times to discuss where we go from here in order to settle the debt with the bank but they refuse to talk. We then found the banks lawyers who are Allen & Overy in London and my lawyers have written to them also on many occassions without a reply.
What is wrong with these people? what are they waiting for some kind of divine inspiration from the madonna!!
Has at this point the bank officially repossessed the property or not? can someone tell me please?
I also noticed that there is little speak of community charges - if the borrower defaults and the banks repossess who pays the charges as i am being chased for unpaid fees and have told the community to go to the bank as the property is no longer mine.
I'm interested to hear how this one works.
Bank Repossessions in Spain: A Legal Perspective
Hi Raymundo,
Many thanks for your speedy reply you don't know how refreshing it is.
Yes it was a bold move by me to stop paying the mortgage but why keep paying a mortgage until you have absolutely nothing left in the bank or collateral to deal with when you know that ultimately this is where your going to end up! If theres no one to rent the property and your circumstances change in your own country why carry on paying! I really feel for the guy who sold his car and maxed out on his credit cards.....that must really hurt!
But shurely the banks and Spanish government should shoulder some of these costs for behaving the way they have i.e. Paper bag money, Black money, government officials taking back handed money, illegal planning permission being granted, banks over valueing property by absolutely ridiculous ammounts, Spanish developers promising rental incomes that were never achievable ect the list goes on.
I have had my lawyer write to the bank to ask for a value to settle immediately but in 18 months nothing, yet i'm still responsible for paying community charges ect which is wasting my cash i have put asside to settle with the bank. It appears that the banks in Spain are a law unto themselves and just about everyone in Spain is on the payroll.
This is the worst deal i have done and there will never be a day that goes by where for 10 mins i don't hate myself for being so gullable. £80k of my kids inheritance down the drain and still counting. Viva Espania..... my arse!!
Bank Repossessions in Spain: A Legal Perspective
I have a question that I would very much like to know the answer to.
All the information I've seen about having a property repossessed talks about negative equity.... What happens if that doesn't apply? What happens if the price of an auctioned property is higher than the amount still owed to the bank? Are the banks obliged to hand over the excess amount to the ex-owner or do they get to keep it as a 'tip'?