Repossession

I owe about 35k Euros plus some community fees to my bank. They want me to do a dacion del pago. However the property valuation has dropped 7% as they carried out a valuation late last year too, and they also want to knock 10% off for their fees. This equates to me owing them about 65k Euros. They want me to pay this off on an unsecured loan over 25 years and are happy for me to pay 2 years interest-only initially which works out to be Euros 190 per month. The only reason I have agreed to this in principal is to try and keep them away from my UK property which has a bit of equity in it. So my question to everyone here is shall I let them just repossess it? How long does repossession take? Can you negotiate during the repossession period (I might be able to find some money in 6 months)???

Hi have you not looked at other options, advice from a lawyer, let to buy, rent the property out ? do you want to be tied to a loan for 25 years?  Get an independent valuation done.

one thing Spanish banks are good at is kicking a man when he's down!

I would suggest some more hard negotiation on the basis you are cooperating with them and as such they will not have to repossess.

Hi - you don't say what the property is worth or where it is located.  If you are able to pay the loan, are you not able to pay interest only on the mortgage instead?  Most banks allow this option as they don't really want to repossess, they have far too much stock already and cannot shift it.  They would charge you to do this but the costs would be much less than what they are currently proposing.

Renting at a really competitive rate - just to get some money to keep the bank happy, is an option as is selling, but you have probably tried that already. 

Everything in Spain takes a long time but then suddenly things can move quickly when they want them to.  However, we are rapidly approaching August when every bank (and every other business too) goes even slower than usual, so that could work in your favour. 

I would suggest a good lawyer to help you look at all the options and Maria de Castro on this forum could point you in the right direction.

Good luck! 

What is let to buy? The rent I could get from the property would be around 600 euros per month and the mortgage is around 900 euros per month. Lets seemed to have dropped. The reason I'm in this mess is because I had a tenant who mucked me about and it went on from there. At present my mortgage is 230k Euros and the bank valuation is 226k Euros. I have been told banks value at a higher price than estate agents as the market is depressed, is this the case? So I owe in back mortgage payments about 30k Euros and no I would not like a 25 year loan with any Spanish bank. Is it legal for a bank when doing a dacion de pago to also add on another 10% for their fees? They told me (UCI) that this is what I would be charged anyway if I sold it privately.

pjb68:

Just have your contract revised by a good lawyer with enough knowledge and expertise on daciones en pago. It is a right, not a mercy from the Bank.

You can read on your rights by clicking on here

Best regards,

Maria

Hi, in the orange line at the top of the page where its says search put in "try before you buy" it covers this in some detail hope this helps.

Ho much would it cost to take advice from a lawyer who understands dacion en pago and reposessions? Is it fair that a bank expects me to pay another 10% of the valuation to them for their fees?

Did you have a contract  with this tenant ? also you dont say where you are in Spain,ask the bank how long the reposession takes they would have good idea, I think this mess you have will cost you money to get sorted out  how much I dont know.