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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