Legal tip 1232. Legal help for mortgage debtors in Spain 3
Monday, November 24, 2014 @ 2:39 PM
Some concepts you better know if you are struggling for mortgage payments in Spain.
Refreshing a post from this summer
Legal tip 1168. What after defaulting on mortgage payments?
12 June 2014 @ 14:03
Qué será, será?
1. Generally, the Bank will send to you a notice of Case being sent to Courts after three monthly defaults. They do not always send the case to Courts right away but an active negotiation with the Bank, with the help of a professional advised at this stage. It is not a good idea just to leave payments unattended and run away.
2. Once in Courts, the Judge will issue an enforcement order and will notify this to you for you to oppose it. Notification needs to be made to you in due address and through right means.Right address is that which was agreed as address for notifications in the mortgage deeds. You need to have full control of any notification being sent there after your payment default as this is in many cases taken as an advantage by the Banks- notify you while and where absent- forobstructing your defence rights.
3. Defence of your position in Courts. Reasons to oppose the enforcement have been recently increased after a Decision by the High Court Of Justice of the European Union. Specially if you are claiming against Ground Clause in your mortgage deed
4. Best strategy at this point is to answer the repossession with a dation counteroffer in order to reach an agreement with the bank to have the whole debt settled after the auction. Of course the difficulty of this varies depending on the equity you have on the house and policies of the Bank.
5.-As you know the way the Bank has to obtain liquid value out of the house is through public auction. If no one bids, the bank can keep it for no lower than 70% (for first residences) and 50% (for second residencies ) of value for auctions. Value for auctions is a big value the house was valuated for for mortgage purposes. It is contained in mortgage deeds and comprises: borrowed capital+ interests+ legal expenses.
IF YOU CALCULATE THAT YOUR REMAINING DEBT IS NEAR 50% OF THAT VALUE, GO FOR A STRAIGHT NEGOTIATION WITH THE BANK.
So, three CostaLuz Golden rules: (1)Never leave a repossession order unattended ,(2) Have control of the address for notifications,(3) Hire a good lawyer to fight the repossession procedure.
Tarifa, Cadiz, Costa de la Luz, South western Spain