fed up with spanish bank

just lately my husband and i lost our jobs in spain, we could not afford to pay the mortgage , we basically had no money, and after paying the bills on our home we could barely afford a loaf of bread /  yes it WAS that bad/  we went to the bank caja galicia to discuss our situation,What a waste of time!! i have NEVER met such an unsympethetic bank in my life! they really didnt want to know. there was no one really in charge to speak to., they were very rude actually, one assistant commented "why did you get a mortgage then". well if we had all known the outcome of this situation none of us would have purchased property in spain would we?, they didnt say that when they were giving out mortgages willy nilly.The assistant then suggested i ask my parents for the money??? does she live in the real world? my parents are 80 and live in a council flat in the uk., then she suggested i find work, once again does she live in the real world? in spain with the season comming to an end everyone will be laid off very soon, beleive me ive been looking. ok i admit it is our problem, and we got ourselves into this/along with another million people/ but you are always advised to contact your lender for help or a solution, well if you bank with caja galicia in torrevieja dont bother ..they are not a bit interested, so soon they will have yet another repossed property on their books. 

 Sorry to hear about your situation.  I had an email from someone the other day along very similar lines but regarding a different bank.  She is at her wits end and the bank doesn't seem to care.

Banks are supposed to be more sympathtic at the moment but they are not all like that.  We have heard of some positive outcomes with some banks but generally they are surprisingly uninterested in helping people in difficulty.

Wasn't some law passed recently where the banks were supposed to give you some sort of breathing space?  Maybe Maria can clarify that if it's the case or not.

Best of luck with it all, it must be very stressful for you.

Justin

As you have been working here then I assume you are official residents paying tax and social security in Spain. I do not know 100% how they work but if you have been made redundant from your contracts then I believe you are entitled to some assistance from the social security - whether as a contribution to mortgage payments or not you would have to check but certainly there would be some assistance to food on the plate.

Would agree generally that banks are unhelpful when it comes to mortgage arrears or missed payments - there is an attitude of zero tolerance in Spain but that is a policy they have adopted here since people started borrowing money to buy houses

Tweety:

Go for a " dación en pago" before they start repossession. You will have the bull by the horns this way:

http://www.eyeonspain.com/blogs/costaluz/1094/legal-tip-27-dation-in-payment-a-right.aspx

Maria

 I have been researching this topic recently and have found this cold, aggressive approach from banks - so unlike the "work together to find a solution in everybody's interests" you might expect in the UK - to be standard response, at least where foreigners are concerned.   I don't think they realise that treating people struggling with their mortgages like they are criminals who should be ashamed of themselves is not going to worgiven the sacel of the problem, which is as much there's as the borrowers.

However I think behind the facade they will negotiate if you are persistent enough.  Spanishpropertyinsight has a whole forum on this topic and this exchange is typical of the experiences discussed:

"yes I managed to get my bank to renegotiate terms (Caja Madrid) it was a long and very frustrating exercise which left me totally an completely baffled as to why the bank was so uncooperative. In the end after 7 months of me nagging and trying everything they changed the conditions for a cost of 1300 euros (which they added to the mortgage) and I now happily pay 545 euros less....ahhhhhhhh 

The emotional roller coaster of frustration was tremendous but the end result was worth it!! Keep trying. They don't want your house!!"

As I understand it there is no law as such but all the banks have been requested by the authorities and the courts to try to reach some compromise with clients that are experiencing problems with payment. However it does appear that the message is very much open to interpretation and willingness of the bank to comply.

In the UK during the previous recession from 89 to 95 banks were less willing to show compassion and much quicker to commence proceedings. In fact in most cases one was evicted after three to six months. The whole process here is much slower as it has to go through the courts who ultimately decide (for want of better expression) whether a property is to be possessed - this process can take between 2 and 3 years (this has happened to friends) and during that time the "owner" can stay in the house unless they choose not to. Lenders in the UK are obliged to show more understanding under the code of practice that was introduced when mortgages became regulated in 2000 (albeit at the time this was voluntary), but from what I hear the process from start of proceedings to physical possession is still very much quicker than it is in Spain and in the UK the same ultimate situation would apply as in this situation - if you cannot afford to make the payments (it sounds as if tweety5 is not in a position to pay anything) then a lender will repossess. 

Dear Bakeja:

Yes, you are right: pressure never ends in their mentality.. it is awful!. That is why we always recommend to our clients a firm and pressing approach with rights by their side:

http://www.eyeonspain.com/blogs/costaluz/1094/legal-tip-27-dation-in-payment-a-right.aspx

http://www.eyeonspain.com/blogs/costaluz/1320/banks-who-made-the-messneed-to-restore-now.aspx

Come on banks... assume the effects of your bachannal!. You will be the first benefitted.

We....need to just be tough with them, with all rights at hand... I can see no other possible actitude.