Bank has offered Dacien de Pago,but?

I have a property valued prior to the recession at circa 469,000 euros.Currently I have it on the market for 169,000 but have yet to find a buyer.I have for the first time in fourteen years living in Spain fallen into arrears with the mortgage.Three years ago the bank put us onto calencia where we paid interest only.This period is now finished and my ex partner who is a joint mortgagee is refusing to sign to extend the calencia for a further three years in order to buy some time to sell the property for a realistic price rather than just give it away in a weak market.
My ex is now residing in the UK and I am continuing to live in the Spanish property.She has refused to contribute anything towards the mortgage for over a year now and with the ending of the calencia agreement my mortgage has now risen to a level I can no longer afford to pay.Its currently €1677 per month when before it was nearer €900.
The bank have e.mailed my ex partner on numerous occasions but she refuses to budge,and as I havnt been able to find a potential buyer so far,Im in a real fix.
I have had to find work in the UK as there is very little availability in Spain,and I work for three months at a time,followed by a months break back home in Spain.
The bank have recently offered me Dacien de Pago,which they claim my ex has agreed to sign,though I have no way of knowing as she has "disappeared" and doesnt communicate with me at all.(Her mother had apparently died last year and left her a considerable sum,and she evidently decided to start a new life without saying a word about it!)
My question is if I sign the Dacien de Pago how long do I have to vacate the property? All my possessions are in the Spanish property and I am currently working in the UK till the end of October on a contract which I am unable to break.The bank is pressurising me to sign the papers NOW,and Im obviously worried about the consequences of doing that.
Additionally if I DONT sign the Dacien en Pago,how long does a repossession typically take and what notice to vacate the property is given by the bank ? If the process is set in motion by the bank would I still be able to sell the property if a suitable buyer were found prior to a repossession reaching its conclusion?
Your advice would be appreciated.

jhamiltonsmythe,

I dont see where you indicate that the property is in joint names, even though the mortgage is. If you are the sole owner, you can effect the Dacion en Pago, but if it is jointly owned, then she needs to be in Spain. Regarding "carencia", she will need to sign whether she is the owner or not, unless she is dropped altogether from the loan, and you assume 100% of it. This is the last option you have to be able to operate normally.

Alternatively, you can advise the bank that you will inmediately suspend payments and not leave the property until formal eviction, which can take up to 12-15 months.

If meanwhile you find a buyer you can certainly sell it, but the outstanding loan will be increased by arrears interest and legal fees. Also, the buyer may feel that he can get a better option if he goes to the bank, which is not normally the case, in addition to which it will get pretty complex.

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Originally Posted by aflores

jhamiltonsmythe,

I dont see where you indicate that the property is in joint names, even though the mortgage is. If you are the sole owner, you can effect the Dacion en Pago, but if it is jointly owned, then she needs to be in Spain. Regarding "carencia", she will need to sign whether she is the owner or not, unless she is dropped altogether from the loan, and you assume 100% of it. This is the last option you have to be able to operate normally.

Alternatively, you can advise the bank that you will inmediately suspend payments and not leave the property until formal eviction, which can take up to 12-15 months.

If meanwhile you find a buyer you can certainly sell it, but the outstanding loan will be increased by arrears interest and legal fees. Also, the buyer may feel that he can get a better option if he goes to the bank, which is not normally the case, in addition to which it will get pretty complex.

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Thanks for the speedy reply.Sorry but I should have made it clearer.My ex partner is joint owner and joint mortgage borrower.Since disappearing from Spain last June she has been in touch with the bank but not myself.She is refusing to sign to renew the carencia,but according to the bank,is willing to sign for a dacien en pago.The bank are pressuring me to also sign the dacien en pago.However I am in the UK till mid October and as far as I understand it the keys have to be handed in to the Notary on signing the documents and the house has to be clear of personal effects.The bank informed me by e.mail that I could remain in the property till the end of October if I sign the dacien en pago now and in the UK in front of a British lawyer.Likewise my ex partner has been advised to sign seperately in the UK. I am not prepared to do this as obviously the bank may then take over the property with all my possessions inside it!
I have asked the bank to allow me to take over the mortgage in my sole name but once again my ex partner is refusing to sign to that effect. She unfortunately doesnt seem to care that the mortgage debt (current balance 100,000 euros) will haunt us both for ever more if the situation cant be resolved.

Thanks for clarifying jhamiltonsmythe, if this is the case then you are pretty much stuck and the only way to resolve this situation is to effect the Dacion en Pago, but you will need to take out your possessions first because the bank is not likely to allow you in, once you have transferred ownership.