Home Repossessions in Spain: A Legal Perspective

[lawbird]

Dear Mel Clarke,

Yes, we can certainly review the documentation and assist you on your matter. If you provide me with your contact details, I can then provide you with a quote for our service. You can fill your personal contact details at the following link:

http://www.lawbird.com/services/contact

Kind regards,

[Jan B]

Thank you for a very helpful, useful and interesting site. We are having serious problems paying our mortgage and have learnt a lot from reading the above comments. It would appear that our first step should be to contact our bank.

[lawbird]

Hi Jan,

Thats correct.

Please find below two articles with tips on what you are about to do:

http://belegal.com/blog-by-antonio-f...-to-your-bank/

http://belegal.com/blog-by-antonio-f...mortgage-loan/

If you are interested in instructing a Lawyer to assist in the negotiations, please fill in the following form with your contact details and some background informaiton and we will contact you:

http://www.lawbird.com/services/contact

Kind regards and merry christmas,

[graham]

Hi"
I have been asking the bank now for some month,s to take back the keys to my apartment.
My partner dyed last year with cancer and left no will, the mortgage was in both names ,i now canot afford to keep the mortgage paid anymore i have for the last year but now all the funds have run out,
the bank seam reluctent to answear me as they seam to want me to inhearet my partners half and pay tax on it !
surly this is not wright as we where not married,
the bank put me in touch with an est agent they use and he could get the place sold for the outstanding mortgage but it all stopped when they said it needs to be singened over to some one befor they could continue,
surley if there is no will and testement left the property go,s back to the bank automatically!
i have now fallen into my first month of arrears for the apartment and am asking them to take the keys back NOW"
but they do not respond even to this,

[lawbird]

Dear Graham,

In order for an estate agent to sell the property, the Seller needs to sign the transfer deeds. If one of the registered owners passed away, the only viable way to transfer the property is by accepting the inheritance first and then signing.

It is likely that the mortgage you took from your bank is a joint mortgage. This means that you are both jointly and independently liable for the full amount. The bank's legal position became a little more complicated since one of the mortgagors passed away, however, if you fail to negotiate with them and default in payment, they will eventually get the repossession proceedings started. Furthermore, with the fall in property prices, they will take the property back but valuing at current market price. You will therefore be liable to pay for the amount outstanding in the mortgage even after your property has been repossessed. Negotiating with your bank is therefore key here as if they repossess it may be too late to open communications again.

For all the above reasons, please note that it is not that "the property goes back to the bank automatically". Its not like that at all. You need to take proactive steps to negotiate a new agreement with your bank and sort the inheritance out before the IHT applicable raises considerably with charges, penalties and surcharges for delay.

If you would like to discuss this further, please do not hesitate to write us an email at info @ lawbird.com.

Kind regards,

[Jan B]

Hi Raymundo, thank you for your kind response. I wrote to my bank requesting they consider a dacio en pago. Within a couple of weeks they have confirmed that they will take my property back and cancel my mortgage. My balance is around 77.000 euros and property value around this value as well.
They have advised that they want to move quickly, carry out a valuation, and have already prepared the paperwork for the notary. I've told them that my mother is going to Spain on 10th February and that she will act as my power of attorney.
I'm very pleased, but also surprised how fast everything is moving. I wanted your opinion - does this look correct to you ?
Best wishes, Jan.

[Jan B]

I forgot to ask Raymundo, are there normally any additional charges that you are aware of to carry out the dacio en pago ? Thank you again for your help.

[lawbird]

Hi Jan,

The forum is operated by different employees at Lawbird.

I would strongly advise you that you instruct a Lawyer to review the paperwork you will be signing. Without reviewing the documentation it is impossible to say whether the deal they are offering you is "normal" or good.

By way of example, we had a client who believed he was signing the return of his property to the Bank but did not realize that in the documentation the property was being valued at significantly less than the amount outstanding in the mortgage. He was then chased by the bank on the outstanding balance even when he had already returned the property back to them.

For all the above I suggest you instruct a Lawyer who will ensure that you are successfully released and who explains to you the consequences of what you are signing.

In terms of costs, there will be charges accruing from the transaction (eg. Notary fees) but exactly how much will depend on the value of the mortgage, the way in which the transaction is being structured and what has been agreed during the negotiations (ie. who will be paying for what).

If you would like to obtain a quote from a solicitor, please do not hesitate to contact us at info @ lawbird.com.

Kind regards,

Marcelo

[Jan B]

Hi Marcelo, thank you for your response. I'll email you further. Kind regards, Jan.

[colin]

I rented an apartment from a developer who was responsible for finding tennants as they offered the owner a rental guarantee when he bought, however the developer did not pass on my rents to the owner of the property and then the developer went bust. The owners lawyer would not agree to me renting direct from the owner as the owner is in arrears with his mortgage and the property will be repossessed. i have been to see the bank who are keen for me to buy the property on a rent to buy deal however they will not accept any rental payments. The owners lawyer has contacted me saying i must start to pay the owner but i am aware that the property is going to be repossessed and also i have no legal agreement with the owner, please advise.