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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.

Legal tip 718. Are Dations still being granted?
01 March 2012 @ 11:33

 The recent advise from government to Banks is to accept Dations when debtors are unemployed and the house is the only house they have. Just yesterday, a Judge dealing with a dation against BBVA deleted almost 270K euros of debt from the debtors and asked the Bank to pay to them two months of rents for giving time to these people to find rental accomodation.

It is a very social and innovative Court decission. A great example to be followed.

If you are not under these merits ( unemployed and the house being the only house you have) it is very likely your dation will not succeed unless the remaining debt is much lower than the value of the house. Initially Banks cannot repossess houses for less than 60% of the value these houses were given when being valuated for mortgages.

If not, I am afraid, that a persistent negotiation with the Bank for debt restructuration will be the best way out as they seem to be now ready to go against UK assets too.



Esteros entre Chiclana y San Fernando

"Esteros entre Chiclana y San Fernando", Chiclana, Cadiz, Spain, by jmerelo at

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Elizabeth said:
19 March 2012 @ 21:56

On a similar subject, it is very sad that foreigners can still start a business in Spain with the Smiling Face of the Bank Manager floating over them, while they sign over basically everything they own...without said bank manager explaining the Ever So Fine Print thats basically tells them that should they (oh, horrors) ever default on their payments, the bank has the legal right to then sell the property at auction, at 50%, (NO, how could they do that?) and demand the other 50% from the poor buyers...and if they can't come up with it, NO PROBLEM, we'll just get it from your relatives' bank accounts or whatever.

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