Problem with two properties in Spain

In 2006 an estate agent sold two properties to me. Both properties's loans are from two different banks. We are struggling to pay both property loans at this time, due to thw slow in the rental. I am thinking of giving one of the properties back to bank, i.e. give them the keys back, the agents say that if i return the keys to the bank i will not get a bad credit rating. But I am worried ,will the bank make me a bad creditor?Will they  take my other property from me? I want to save the other property & want to stay as a good creditor.

Any coresspondance would be much appriciated

Hi Sohal - you would really need to speak to the banks concerned.  If there is some equity in the property you hand back then they may be willing to accept that you can walk away without any penalties.  However, each bank rakes a different view and if you are in negative equity they will usually want to pursue you for the difference between what you owe and what they can sell the property for.  Some banks seem to be a bit more understanding as this is happening more and more.

Do talk to them before making any decisions as they can now chase you back in the UK for any debts.

Good luck!

My comments below in bold green:

In 2006 an estate agent sold two properties to me. Both properties's loans are from two different banks. We are struggling to pay both property loans at this time, due to thw slow in the rental. I am thinking of giving one of the properties back to bank, i.e. give them the keys back, the agents say that if i return the keys to the bank i will not get a bad credit rating. But I am worried ,will the bank make me a bad creditor? They will not if you get an agreement with them.Will they  take my other property from me? No, if you keep paying the mortgage, obvioulsy. I want to save the other property & want to stay as a good creditor.

You may find this article interesting: http://www.eyeonspain.com/blogs/costaluz/1094/legal-tip-27-dation-in-payment-a-right.aspx