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Legal tip 567. Dation is a right, of course it is
Wednesday, July 20, 2011 @ 3:21 PM

I differ from these points who say that dation is not a aright. And our Civil Code differs too.

Through dation, considering the value the Bank gave to the property, you have the right of liquidating your debt by returning the house to the Bank.

This is a post we wrote on this in January 2009: http://www.eyeonspain.com/blogs/costaluz/1094/legal-tip-27-dation-in-payment-a-right.aspx

If you defauledt and are on arrears, there are still possibilities, before they start the repossession and even after this: some Banks actually prefer the house to be in arrears for accepting the dation.

Even after being noticed of repossession, the repossession procedure can be contested through a dation- covenant for payment answer. I am sure many judges will sympathise.

Info about Last Decree on auctions after repossessions, here

KIndest kindest

Maria

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4 Comments

Lynn said:
Sunday, July 31, 2011 @ 4:32 PM

If a bank refuses a dation offer what can the owner do to prevent repossession ?

Maria said:
Tuesday, August 2, 2011 @ 2:06 PM

Nothing can be really done to avoid the starting of a respossession by a bank. Much can be done to oppose it and try to obtain a payment.

First good thing is to be proactive with a dation.

Kindest regards,

Maria

Gerry said:
Friday, August 19, 2011 @ 11:49 AM

I´m sure many people, myself included, are interested to have clarified what happens in cases where the outstanding mortgage is higher than the value of the property.

Does the debtor remain liable for the difference or is he or she debt free once the dation is effected? If the former is the case will the debt hang around your neck until it is fully paid, or is there a time limit or way it can be discharged?

Would appreciate any comments on this.

Maria said:
Friday, August 19, 2011 @ 12:04 PM

There is a recent regulation dated July this year by which the Bank cannot keep the house for less than 60% of the initial mortgage valuation value of the unit.

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Maria
Lawyer. Director of the Costaluz Lawyers team. Useful legal tips for an easy way in Spain. www.costaluzlawyers.es

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