Bank Repossessions

Hi All,

I have a couple of neighbours on my Spanish complex where they have handed the keys back to the bank, as they have been struggling with the mortgage payments this year.

The bank have threatened them with registering their name with Experian and Equifax.

Can they do this? I thought that the bank would first have to subcribe to the relevant Credit Reference agency. Either that or to sell the debt to a UK company first of all.

Has anyone had experience of this? They are at their wits end.

Regards

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Depends on the lenders sphere of influence - believe they are trying to do it owing to increasing repos with non resident buyers owing to fraudulent mortgage applications and non resident purchasers over extending themselves and not being able to meet payments - Bank of Spain is very concerned at the rate at which repos are rising - extremely rare for a Spaniard to get repo'd so very very new experience for them - would rather eat bread and cheese than miss a mortgage payment - very conservative attitude towards debt responsibility in Spain - have replied to your PM.

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Thanks Smiley, i'll pass on your comments.

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Our lender (GE) credit checked us with both agencies before making an offer. They have also told us that they will keep insight records up to date. I presume they can do this as GE has a large presence in the UK.

Mark

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I have thought for a long time that repo level will get that high for banks to follow non residents back to their country of origin and claim there - this will mean debts on uk homes and probably garnishee orde, worse case scenario is home being repossessed by a spanish bank - and there is really no reason why they cannot do this.

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Hi All,

Back from Blighty and have set the air con in the office to defrost!!!!!!!

I think stephen could possibly have meant expats that live on a spanish complex as it is quite a rarity for the spanish to allow property to fall into the hands of the bank,generally friends and family rally around to help anyone in dire straits.

In answer to your question,the bank will take legal action after 3 missed mortgage payments with a stern letter and threat of repossession,it can drag on some time but the banks will take the property in the end.

This has become very common within the expat community with people who were promised  that rental income would pay their mortgae not actually coming to fruition.

People are walking away from property and there financial commitment when they cannot meet the payments.

Unfortunately for them the banks now have the power to chase any debt accrued whether they remain in Spain or return to their country of origin,it will at some point affect your credit rating!!

The system is very differnt here than in the UK,it does take some considerable time but eventually the property wil get returned to the market place,in the olden days any property that came into the hands of the banks was bought up very quicly by friends or relatives of the banks director,now the volumes are considerably higher and property is being given to agents to move at the amount owing on the mortgage plus legal costs and any outstanding debt.

 Over a year ago we approached the banks to market the properties for them,every single one denied they had such properties stating that "they were a good organisation and did not lend to anyone who would not be able to keep up their payments" in fact they were burying their heads in the sand and now have a steady flow of property to dispose of.

This was always dealt with on an autonamous bases within each branch,now there are departments set up to deal solely with this at head office

Now they come to us.

Before anyone starts to think this is another nail in the coffin of the Spanish housing market just remember that there are approximately 100 properties repossessed every week in the UK and this has been steadily growing over the last few years.

As a rule most people here pay their mortgage on time and never have to face the stark reality of losing their home but it is worth remembering that when a rogue agent mentions the fact that "you will easily cover your payments with rental return!!!"

Anyway,on a lighter note the is no wind,driving rain,minus temperatures and grey skies here so it's good to be back.

Georgia 

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