Repurchase / repossession - advice needed

Back to normal, abuse and insults, and always the same 7 star generals.

Windtalker....I do not think we, Spanish, do not welcome British anymore. We welcome anyone willing to get inserted in our culture, respecting our laws, paying the necessary taxes. We are, in essence, a very hospitable culture. And we all need each other. It is also part of our times.

Baz1946 you should look beyond your nose ...the British are no longer welcome in Spain ...and this hate is only going to get worse  when we get out of the EU...we are blamed for high property prices and draining the Spanish NHS and the creation of a  black economy.

This message was last edited by windtalker on 28/09/2017.

Certainly not a snob, glad you have no debts you didn't in Spain either, Yes I read your article which was about the Spanish not wanting visitors and still nothing to so with the OP problems with his bank and house, and I also read the article some weeks back, was that the reason you left Spain then?  because that wasn't happening back when you left.

I don't have rose tinted specs on either, never have done,  I like to say it how it is, have a very good relationship with Spain, it has it's faults like most countries and for what ever reasons it seems no one will admit the UK has bigger problems then what we are led to believe so in thinking that the UK is problem free is very false.

I get offered money for my business on a regular basis, and more then double,  just because it's been offered does not make a sale though.... And twice for a caravan where you live is that good then?

Oh Baz

You sound like a bit of a SNOB I have no debts my caravan is my CASTLE yes I lived the HIGH LIFE but the writing is on the WALL you probably havent even read the ARTICLE because your head is so far UP YOUR A@@@

TAKE those ROSE TINTED spectacles off for once in YOUR LIFE man

Oh and IVE been offerred TWICE what I PAID for it so whose the MUG now

Love Hugh xx

Unless you can afford to clear the outstanding dept...at the original purchase price that the bank want...it would be a wise move to hand the keys back ...and when the bank put it up for sale at half the price of what they wanted of you then buy it back off them if you like it that much....l am certainly no expert but every person that I know that has sold ..have sold at a massive loss so personally I think the bank is doing you a big favour taking the property back... DON'T YOU.

Looking at possibilities of a settlement with the bank, depending on particular circumstances of each case, is always something recommendable these days.

HAND THE KEYS BACK PEEPS when euro interest rates rise in a few years you will have wasted another 20k when its REPOED

Listen to the EXPERT I study these things

https://www.thesun.co.uk/news/4553950/majorca-spain-british-holidays-tourists-leave-locals/

I saw the WRITING on the wall thats why I MOVED back to UK

ASTA LA VISTA MAYBE

Love Hugh xx

Sure please do offer advice on such matters that help the OP, but in your case it would be wise to remember that you did live, as you kept telling everyone 'Under the radar,' even to the point of using someone else's swimming pool which in your words, they didn't know about, to my understanding the OP wasn't doing any of this.

You always posted, and kept on about the cheap living in Spain and how it was so much better then the UK, Sunday roasts and a pint for next to nothing, whenever you could you put a damper on the UK.

The article in the 'Sun' has no bearing at all on the issue here.

Yes, it's true you did move back to the UK, only to live in a 'Caravan' in one of the most 'Deprived areas of the UK,' so I can see where that does make you a studious 'Expert' on property dealings and all it's pitfalls.

Maybe sell it, whenever times are hard sell something!!

try and sell it through an English estate agent or a Spanish one who is a hard salesman/woman.   Put it on the books, you never know eh.  

If you take a drop on it at least it's going to minimise the interest and restructure the debt?

HAND THE KEYS BACK PEEPS when euro interest rates rise in a few years you will have wasted another 20k when its REPOED

Listen to the EXPERT I study these things

https://www.thesun.co.uk/news/4553950/majorca-spain-british-holidays-tourists-leave-locals/

I saw the WRITING on the wall thats why I MOVED back to UK

ASTA LA VISTA MAYBE

Love Hugh xx

Mark.   It's a bad situation your finding yourself in, but with 10k saved and the repayment mortgage kicking in in December you should be able to make a 'capital' repayment and reduce the principal sum?  

If you can make a personal loan here in the uk for some more money, you can again pay most or all the principal off and have a reduced percentage rate secured over here?  

Im assuming a flat/apartment before the credit crunch would be around 70k, for example, and you can settle the debt by paying it off.  

It's not as bad as it could be Brian, at least we are "reasonably" prepared for the increase and have an idea what it will be costing (certainly nowhere near as much as the OP anyway!!). We have the options for the money saved, pay off some capital or use it towards motnhly payments. I am not sure 10k will go an awful long way as apartments before the credit crunch were about double your estimate (just under half your estimate now). We don't have enough collateral in the house over here to secure the funds, ironically it would have to be over a shorter period too as in the UK mortgages generally are to 65, our Spain mortgage is/ was 30 years.

We knew what we were getting into at the time, but didn't expect to still be there now. But hey, you live and learn .

Mark

Baz,

I was referring to a mindset of people who suggested way back when that Banks would never be made accountable with regard to non provision of Bank Guarantees, to act as an  example of how Banks HAVE now been made accountable.  I seem to remember that these same people  suggested it was the fault of the "innocents" at that time.

In terms of the situation with regard to interest only mortgages however, if it can be demonstrated that the bank did not adhere to correct legal processes from the outset or during the ongoing term or at maturity then I wonder if these instances could be used to gain a better negotiating hand with the Bank ? No doubt a respected independent legal representative  could advise based upon the specific individual circumstance. But having said that, Supreme Court rulings would need to have been established to support such claims, for this to be considered a realistic way forward.

Briando's suggestion sounds an interesting alternative.

It really makes my blood boil when you consider that prices collapsing in this manner, which lies at the heart of this scenario, was brought about by the banking crisis and in part the lack of Banking regulation to control the issuance of such mortgage products without adequate financial appraisal ( constraints) and forewarning of the associated risks.

defending against the mindset that generalises and implies innocent people who placed their trust in a system with so called guarantees supposedly in place were to blame,

Ads where, and what, are the so called guarantees you speak of, not forgeting this post is about borrowing money with only a small amount of montly interest,  knowing the borrowed amount had to be paid back under the agreed loan term.

Yes ads it's important to fight for your rights, even if it costs and even if people say you have no chance and laugh.   In the end it's the fighters who make the difference. 

Mark.   It's a bad situation your finding yourself in, but with 10k saved and the repayment mortgage kicking in in December you should be able to make a 'capital' repayment and reduce the principal sum?  

If you can make a personal loan here in the uk for some more money, you can again pay most or all the principal off and have a reduced percentage rate secured over here?  

Im assuming a flat/apartment before the credit crunch would be around 70k, for example, and you can settle the debt by paying it off.  

Loving Spain doesn't prevent you wanting the corrupt elements and malpractice reformed does it Roberto? Surely you're not suggesting you love those elements that have the potential to cause such devastating effects as losing your home or your life savings? 

It takes courage to tackle the Banks and make them accountable in this day and age....likewise its hard work to keep defending against the mindset that generalises and implies innocent people who placed their trust in a system with so called guarantees supposedly in place were to blame, or expect them to be wise PRIOR to the event that devastated people's lives ( not forgetting crises and subsequent knock on effects that affected  property prices to collapse were caused by Banks lack of regulation and compliance in the first place). 

All too many have sadly turned a blind eye to the corruption and malpractice across the real estate industry in Spain, and all too many have unwittingly accepted this as the norm " if you can't stand the heat then get out of the kitchen".

I would ask the question has this turning of blind eyes helped Spain, or is it those who during this last decade and beyond, have demonstrated great courage ( including some Spanish lawyers who dared to put their heads above the parapet, so to speak) and tackle this head on, I.e. tackle the indemic lack of ethical principles within the financial institutions, the real estate agents, the legal fraternity and developers ( still much to do however!)

I would argue that to turn one's back on abusive practice in all its many forms, or ignore loopholes in a system that " allows" abusive practice to thrive in this way, does great harm to Spain and it's wonderful people, from wherever it emanates.

I shall put my head above the parapet here, and hope it isn't shot off. Our situation is a little different, but there are similarities.

We purchased using a mortgage with a 10 year interest only period, 9.5 years ago (high LTV of 95%, should've listend to Smiley!!). The remaining 20 years is repayment. We bought from NSJ (think about it, them who can't be named!!), used our own finance (GE Money via Deutsche Bank) and our own solicitor. The idea was to buy the apartment as a starting block, with the intention of moving out to Spain when my Son left school and selling our house in the UK, then selling the apartment and buying something bigger for us all. We both had jobs lined up with our respective employers, so everything was hunky dory. However........  My Wife got a promotion at work which moved her to a part of the business where she had to be office bound for a majority of the time, so the move was put on hold. In the meantime the credit crunch hit and prices plummeted. We were/ are now in a situation where we couldn't give it away, let alone sell it. The repayment part of the mortgage kicks in in December and monthly payments will rocket. Yes, you could say we put out heads in the sand by hoping the market would improve. Yes, we should have put aside the money we were saving with low interest rates to be able to pay a lump sum off (our UK mortgage allows us to overpay, so when rates go down, or we re- mortgage to a fixed rate, we still pay the same amount but as an extra payment), but we didn't!! Instead we continued to hope the market would improve, as it has done in the UK and we would be able to sell with a minimum loss. We have however put aside 10k from beginning to overpay to an account of our own to help pay the extra payments. I don't think 10k will put a dent in the monthly repayments.

Our mortgage company has already said they will not offer re- mortgages as they want out of the market and have already transferred us to a new company they set up specifically for Spanish mortgage purchases.

I also spoke to Maria a couple of years ago about dacion, if that is what the OP was suggesting. However, the cost in leagal fees was about 5K€ at the time and I decided that money would be better put aside to pay off/ pay the mortgage in the future.

Mark

Roberto I'm not sure the driving analogy is perhaps the right one.

I think the lenders and their agents were also gambling because, even if an uneducated person bought under the circumstances we are discussing, they have to service the loan for 10 years or so.

Then if the banks and agents have to step in, they also gamble the property is worth much more on repo and will sell in a short time.

so really, its backfired on both parties and it becomes a bit of a bun fight to come out of it with finances intact.  That's why I was saying (and I think Ads) that the paperwork and original arrangement has to be scrutinised to make sure it's fair, legally I mean, and it's going to be finished off equitably.  

Well, we've almost certainly collectively scared off the OP now, which is a shame since we'll probably never find out the"uncomfortable truth" now, but never mind, it's an interesting thread anyway.

Ads, where I said it's old news, you said the "delayed impact on mortgagees as maturity nears and  the need to remain aware via this ongoing educative process of options available", suggesting that because in many cases perhaps 10 years have passed since these borrowers took out loans, it's somehow understandable & acceptable to have forgotten, and that somehow absolves them from any personal responsibility. How would you feel if someone crashed into you, but said, I took my driving test 10 years ago, I've forgotten how to drive, nobody reminded me, so it's not my fault? The issues discussed here fortunately have not affected me but through the media & forums such as this, I am aware of them anyway, so how can anybody who is directly impacted not be? Same goes for unrentable "investment" property (I think the correct term in the investment world is "junk"): look back at many of my posts from the early days of EOS, and you'll find I consistently warned of the folly of buying on the kind of out-of-the-way urbanisations that these schemes typically promoted. Baz mentioned car finance - well we all know that's going to be the next "crunch" - don't we??? Again, no crystal ball here, just keeping up to date with the new news.

I'm no friend of the banks either, and I don't think any of us here think they're innocent. They are being called to account, but if it's taking longer in Spain than elsewhere, you have to be realistic and accept that Spain is different - it's one of the reasons we all love it, after all. But if you can't stand the heat, get out of the kitchen - or maybe don't go in in the first place, if you don't know what the heat is like.

This message was last edited by Roberto on 26/09/2017.

This message was last edited by Roberto on 26/09/2017.

This message was last edited by Roberto on 26/09/2017.

This message was last edited by Roberto on 26/09/2017.

Yes ads, fully aware of how the banks are, certainly I am not a friend of them.

I have only posted what on the face of it is how it looks to me because like us all here we never get the 100% full picture, no doubt I could be well of the mark sadly though I am meeting quite a few people who are getting into much the same situation, looks like another growing problem for years to come.

Baz,

Sadly you only have to look at the detail of rulings at the highest levels against the Banks to recognise the malpractices and failures to inform as required in law, to failures re illegal mortgage clauses, failures to regulate and non provision of bank guarantees, etc etc to comprehend the uncomfortable truths.