Property was bargained away and we are being chased for the shortfall. Please help!

I live in the UK & I bought a spanish property in 2006 for 210,000 Euros. The mortgage was with a Spanish Bank, i tried to pay the mortgage for 2 years stopped last year as i could no longer afford it. Caixa Galicia were going to take back the proeprty with no questions asked but changed their mind and got a debt collection agency called MULTIGESTIÓN IBERIA, S.A. to recover the debt. I signed over power of attorney for them to sell the property. The property has now been sold for 90,000 Euros (a shortfall of 120,000 Euros). I received an e-mail from the company, it reads as follows.......

Quote:

---

I inform you that your house has been finally sold, however, I'm afraid I cannot tell you everything is over yet. As you may know, prices have decreased a lot and finally we just got 90.000 € for your property. This means that, in theory, you still would owe us the difference (more or less 120.000 €). Don't worry, we don't expect you pay us that much. We are willing to offer a very interesting discount as long as we reach a friendly agreement. What I need from you now is that you tell me how much you will be able to pay. The creditors are very flexible with the way you pay the residual claim: you may do monthly payments for several years or ask for a loan and pay at a time. We are even open to any other suggestion. So please do your calculations and let me know which solution you prefer.

---

I have a little daughter and a child on the way in August and work part time. I cannot afford any monthly payments at all as i already have a £25,000 loan which i used to pay the initial deposit on the property. The Spanish property was in my sole name but my home in the UK is in joint names with my husband. Please can you tell me what my options are and what the chances of them pursuing me for the outstanding 120000 Euros in the UK. Also does it matter that my UK home is in joint names with my husband and the spanish outstanding debt is in my sole name. Thank you in advance for your assistance.

Dear Madam,

Your lender will have grounds to raise an action for the debt in English Courts. You will be viewed as domiciled in England so an action could be raised against you. The bank may present a petition for sequestration, to essentially seize control of your assets.

The bank may sell your English property to meet the outstanding debt. Alternatively the bank could have a Court Order granted that means you cannot sell the property until you've paid the outstanding debt.

I strongly suggest you contact the English Law Society who should be able to put you in touch with an appropriate law firm specialised in such cases.

I'm sorry, we cannot help you as the applicable law is England's.

Yours faithfully,