If I cant sell - can I walk away without Spainsh bank coming after me in UK?

I am in the same position as everyone else.  Interest rates have gone up and rental income down.  I cant afford to keep my house in Spain.  I have been trying to sell it for six months and have dropped the price down to euro140,000, (loosing e75k) which is not far off the mortage amount.

I have put £12k in this year alone and it is it is looking like a black hole, which no end in sight.

I am on the brink of walking away and defaulting on the mortgage.

Question is - can I? without the Spainsh bank chasing me in the UK, as if I can't get enough to cover the mortgage they won't either.
Any armchair lawyeres out there who know the answer to this.

Ive tried to go interest only but get refused because I have more than 50% of disposal income tied up in mortgages and loans - which is why I wanted to go to interest only in the first place - catch 22.

Tony

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You won't need armchair lawyers advice on here, there is a very good proffesional who will almost certainly spot this thread and tell you exactly where you stand. Good luck.

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I am not a professional, but am assured by our Administrator's Lawyer that debts CAN now be chased up in England.
This was not always the case but from sometime last year banks are allowed to do this. Also debts  proved and sentenced before a Spanish Court can be followed up in England.
our Community is in the process of doing just this.

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Tony,

As I can see, you have already tried to get a settlement with the lender bank...

have you tried renting with option to buy with a reasonable rent fare?

Banks will execute the debt in the UK if, through their own accounts, that is financially worth it .

Please, email us if you need a more personal advice.

Best,

Maria

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i am in the same boat. i think half of spain is!! i have tried talking to my bank and they just dont want to know. the fact is you cant give them what you havent got!!  spose the only way out is to do a runner and change your name by deed poll, its a shame this country make you do things like this..but it looks like its going that way!

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Hi Tony and Tweety - You are certainly not alone in this - I deal with people every day who have mortgages which are higher than the current market value of their properties and who cannot continue to pay their monthly bills.

I think you have to do some serious arithmetic and work out whether it is better to sell at a loss - rather than allowing the bank to repossess the property, selling it for a pittance and then pursuing you for the difference as well as charging you for the court proceedings.  It may be cheaper for you to sell in these circumstances than allow a repossession.

Sorry if this sounds very negative but if you cannot pay the mortgage and the bills on the property then you are going to make a loss whatever way you play it - just think very carefully about how you can minimise that loss.

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Hi Tony, just joined thread so sorry for late comments.

You have three options

1. Re-negotiate the mortgage to interest only to make things more affordable - if you can

2. Miss three mortgage payments and legal proceeding will be started. The bank will reposes the property. At a later date the property would be sold through an auction and depending on the sum attained would depend on the decision by the bank.

If the auction managed to reach the mortgage value- no problem

If the auction did not manage the mortgage value then it would depend on the amount. The bank will not chase you if it is financially not worth it and your debt would become toxic.

3. Offer to give the property back. The process in Spain is called "DACION EN PAGO" The bank may allow this to happen but it depends on the value to loan equation. If the bank can see a potential profit when they sell the property at auction or in any other way they may consider this to be a way forward. You would lose any investment you have put in to date.

There is a 4th option and that is to carry on and keep the property. Yes things are bad at the moment; yes the scare merchants are out in their droves and having a field day. We humans have very short memories, when the upturn comes (and it will) you may look back and thank god you did not do anything daft.

Hope this helps

Ian

 

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

Of course Banks are always willing to keeping you paying the mortgage, so presenting yourself as with enough rights for paying in kind ( with the keys, according to information above) will present your self as a most informed and protected client. 

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