Can we be chased by the bank after arranging a Dacion en Pago?

[Lawbird Lawyer]

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 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 LarraÃ*n Nesbitt