"Dación en pago"

Post reply   Start new thread
:: New - Old :: Old - New

Pages: 1 |

Forum home :: Latest threads :: Search forums
The Comments
28 Oct 2008 00:00 by stan80 Star rating. 6 posts Send private message

Can anyone shead some light on this matter.

I am not in negative equity and was wondering how easy it would be to hand the property back under this term.

Thanks in advance.

Stan



Like 0      
29 Oct 2008 11:38 by Lawbird Star rating. 59 posts Send private message

Lawbird´s avatar
This is basically handing over the keys back to the bank and signing a deed at the Notary by which the bank commits itself not to chase you for the debt and consider it discharged for good. The catch is that the property must not be in negative equity. This is more difficult than people think because due to the easy credit of the last years the Loan To Value of properties was really high, too high in fact, hence all the bank related problems we are reading with massive down writings. People borrowed far too much and now their properties may have fallen below their loan. If this happens the Lender will be very reluctant to agree to this "dación en pago" (hand back the keys to the Lender) because the collateral has few or no equity left.

_______________________
Lawbird Spanish Lawyers http://www.lawbird.com



Like 0      
29 Oct 2008 11:47 by stan80 Star rating. 6 posts Send private message

Thanks for your reply.

So let's say I'm not in negative equity but I wanted to hand my property back under this term, how would I go about it.

Also does the bank have to allow me to do this is if I want or is it up to them?

Thanks in advance.

Stan



Like 0      
29 Oct 2008 11:53 by Lawbird Star rating. 59 posts Send private message

Lawbird´s avatar

You're welcome Stan.

It's the bank that decides not yourself I'm afraid. Propose it to them and see what they say.

The bank will evaluate if this is line with its best interests and will determine the amount of equity in the proeprty commanding an updated appraisal if neccessary. If the numbers stack up, they will accept it. You will both sign the deed at a Notary's and that will be the end of the matter. I advise you to hire a lawyer to make sure your debt will be totally discharged. The bank will now own the property having waived a lenghty and expensive court procedure (repossession). 




This message was last edited by Lawbird on 10/29/2008.

_______________________
Lawbird Spanish Lawyers http://www.lawbird.com



Like 0      
29 Oct 2008 14:50 by stan80 Star rating. 6 posts Send private message

Thanks again for coming back to me so fast!!

In your experience how likely will the bank take on this proposal?

I have tried to sell my property but due to the Spanish property slump I have been unsucsessful.

Due you have any idea at what percentage property has dropped in the Costa Blanca region?

Thanks again for your help.

Stan



Like 0      
26 Nov 2008 12:22 by Lawbird Star rating. 59 posts Send private message

Lawbird´s avatar

We've written a specific blog post on the dación en pago procedure as we've received many requests on the matter.

 



_______________________
Lawbird Spanish Lawyers http://www.lawbird.com



Like 0      
28 Nov 2008 17:37 by Rixxy Star rating in San Pedro. 2010 posts Send private message

Rixxy´s avatar

Talk to your bank. Tell them you cannot pay anymore and see what they say. If there is enough equity in the property then they may take it back but each case is different.



_______________________

Quite frankly m'dear, I don't give a damn!

www.herbalmarbella.com




Like 0      
30 Nov 2008 06:01 by mariadecastro Star rating in Algeciras (Cadiz). 9345 posts Send private message

Legal Questions? Speak to Maria Direct

Yes, the best thing is to talk to the bank, maybe with the help of your lawyer, in order to see what kind of agreement is offered.



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



Like 0      
21 Dec 2008 14:25 by mariadecastro Star rating in Algeciras (Cadiz). 9345 posts Send private message

Legal Questions? Speak to Maria Direct

 A very important thing to know is that the Bank cannot deny a dación en pago  without proper justification and that if so, you can ask for judicial help.


 



This message was last edited by mariadecastro on 12/21/2008.

_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



Like 0      

Pages: 1 |

Post reply    Start new thread


Previous Threads

Planning to move to spain, got a few questions if anyone could help me! - 4 posts
Newbie here! - 3 posts
Another BIG Thank You to Sharon W - 0 posts
Anyone run a market stall? - 7 posts
Illegal President? - 8 posts
Favourite Spanish songs - 61 posts
Moving Checklist - 5 posts
Exchange rate €1-15/£ - 1 posts
Help! reposesion threat - 1 posts
Reposesion in Spain - 2 posts
B&Q / BRICO DEPOT in Crevillente soon - 10 posts
Flatmate wanted - Costa del Sol - 0 posts
Key Lounges - 24 posts
Leaking pitched roofs - 3 posts
Costaconsoles. Mazarron - 2 posts
Santander Bank - 1 posts
Swap 2 bedroom townhouse Murcia - 0 posts
Monday morning giggle - 3 posts
Esoteric healing - 0 posts
Living in Real Spain - 9 posts
Painting Holidays - 6 posts
Driving a Scooter in Spain - 7 posts
No Water - 4 posts
im in hospital - 6 posts
impoting terrace furniture - 0 posts

Number of posts in this thread: 9

DISCLAIMER:  All opinions posted on these message boards are the opinion solely of the poster and do not necessarily reflect the opinion of Eye on Spain, its servants or agents.


1 |
Our Weekly Email Digest
Name:  
Email:
   


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x