Home Repossessions in Spain: A Legal Perspective

[peter williams]

Due to a messy divorce.......I have just been forced to declare myself bankrupt in the uk where I reside....I have a place in Spain just in negative equity..... I have NO money!! Advice please re disposal of Spain - handing back keys etc?? Thanks.

[Patricia]

Dear Mr. Williams,

I recommend you to approach the bank at the earliest and let them know about your new situation, showing them the relevant documentation from UK. Afterwards, you can start negotiating new mortgage conditions or finally get to an agreement with them to hand back your house in exchange fo the debt.

We can offer our assistance at Lawbird, so please feel free to e-mail me on Patricia at Lawbird dot com to get further information.

Regards,

[eamonn]

Before i begin let me thank you all for this really useful forum and for all the advice you give. Keep up the great work! I own an appartment in Rojales on the Costa Blanca.When i bought it mine was the in the 3rd of 4 blocks. The builders however decided not to complete the 4th block and errected a scruffy corregated iron fence around the vacant plot, dumped building materials in it and then just left it. Because of this the neighbourhood has gone down, with decent families scrammbling to get out. This has of course meant an accelerating drop in values. I currently have a mortgage of 62,000 euros( the property is now probably worth less than 50,000) Could you please tell me approximately how much i will have to get my mortgage down so that they will accept me handing the keys in and won't be inclind to chase me for the balance. I underdstand that this will be difficult for to answer , but would be really grateful for any approximation

[Patricia]

Hello Eamonn,

Thank you for your compliments, we try to be as much helpful as we can.

Unfortunately, I am unable to provide with an approximate amount; it is very difficult to find it out as each bank follows a different criteria.

Regards,

[Malcolm]

Once again I have turned to your page for information - it seems to be the only reliable source although I am sure there are others.
My situation is that I own three properties. A house in Orcheta, a bar in Villajoyosa and a storeroom below the bar. There is also a small loan. All properties are on separate mortgages with the BBVA. When things became difficult (lack of money) two and half years ago, I stopped paying the mortgages. I kept the bar open until April 2011 but vacated the house in June 2011. I thought all the properties were in negative equity and received no assistance from BBVA. I have not had any communication from them and their attitude was obstructive. Recently I approached them again and received verbaly from the Bank Manager a figure which indicates we were not in negative equity but if we sold the property then this would clear all outstanding money. I returned to the BBVA branch the next week to confirm that the figures he had given me were correct but found the Bank Manager absent so I spoke to an assistant who gave me a completly different figure. I'm talking €35,000 higher just on the house - why the Bank Manager should give us a low figure I do not know but I have my suspicions. In the preceeding week I had received an offer on the house that would have more than covered the Bank Managers original figure. We have literally a long line of people waiting to buy the bar and store room - so no worries there. I'm sure we will have enough money after the sale(s) to clear the outstanding amounts but are mystified by the BBVA Bank Managers attitude and he does not appear to be an honourable man. (He admits he has his own agenda by having friends willing to purchase the bar and store - at the right price). What I need is someone to guide me through the legal minefield - would your Firm do this and could you give me some idea of the costs involved. I am going to see the BBVA tomorrow to try and get something in writing. Thanks again for your wonderful informative web page.

[Patricia]

Hello Big Sk,

Please accept my apologies for this late reply, as I believe that you have already visited Spain and that your son may have signed the agreement the bank offered.

In these cases, the best option is to renegotiate the mortgage conditions or try and agree with the bank the Dacion en Pago, that is, that the property is handed back to the bank as payment of the debt thus being your son freed from any future liability in relation to it. However this is only attained if the equity left is small, so renting the property during this period will bring in some cash but it is advisable to inform the tenant, unless it is for short rental.

In your son´s case there is also another person registered in the mortgage deeds, who is also liable for the debt, not only your son, and this fact must also be considered in relation to the new mortgage conditions, as a dissolution of the jointly owned property must take place so that person´s name is removed from the mortgage deeds, though this can only happen if the bank accepts it.

Please feel free to email me on Patricia at Lawbird.com if you wish to receive more detailed information on how to proceed and learn how we can assist.

Best Regards,

[Barry]

I split up with my girlfriend 3 years ago and we owned a property together in Spain. I have since found out that the house is standing empty. The mortgage has not been paid for the last 3 years, the bank I bought it from the branch has since closed. I have sent various emails and they keep getting bounced back to me. Is there a possibilty I could take the house back on, with a reduced mortgage rate (1500 euros three years ago) or shoud I just cut my losses.

[Colin]

Please help. My spanish property is in negative equity, so the bank will not accept dacion en pago. I no longer can afford to pay the reduced amount my bank has offered, We do not want the property any more but we can find no buyer, and the bank is demanding money.

We used your firm to buy the property in 2007, and you provided a great service at that time, and I am hoping you can now offer me some advice on what my options might be this time.

[Patricia]

Hello Colin,

I am afraid that the only option is to contact the bank and start the negotiations of new mortgage conditions that suit you both for a certain amount of time or try again a Dacion en pago, this time with the aid of a solicitor, that is quite convenient as the banks usually consider their legal perspective.

Please feel free to send me an e-mail by clicking on my profile so we can look for your file and study the case.

Regards,

[dee]

Hi can you give me an idea of the costs involved in a repossession. what can the bank charge me.