Handing in the Keys

Hi all,   Heffin here,

This is really a bit of a sad tale. Someone I know has got into serious difficulties with her Spanish mortgage and as the price of her property has amost halved in value she is unable to sell it for enough  to enable her to repay the mortgage.

Without going into details of why she is in financial difficulties, they are such that she is no longer able to afford the mortgage repayments and is seriously considering in 'Handing In The Keys'  to her Spanish mortgage lender.

I have told her to seek professional legal advice before taking such a drastic step, but she has asked me to pose the question on the forum: Has anyone else out there been in a similar situation and what are the implications if she did take this course of action.

Regards, Heffin....

She might try first to see if a mortgage change would enable her to keep paying :

http://www.eyeonspain.com/blogs/costaluz/2181/legal-tip-130-can-i-change-the-terms-of-my-mortgage.aspx

http://www.eyeonspain.com/blogs/costaluz/2183/legal-tip-131-my-bank-refuses-to-relax-my-mortgage-what-can-i-do.aspx

http://www.eyeonspain.com/blogs/costaluz/2190/legal-tip-132-less-charges-by-banks-when-change-of-entity-and-early-repayment.aspx

and if not, a dation in payment or a payment agreement ( with handing of keys) with the Bank so she liberates fully from the debt:

http://www.eyeonspain.com/blogs/costaluz/1094/legal-tip-27-dation-in-payment-a-right.aspx

If the Bank refuses to accept the dation, it just will be able to start a repossession to which you can then oppose again your already started dation in payment so you both, Bank and client, can end up with an agreement for the payment of the debt ( of course including the full value of the handed property)

Has not been overcredit the reason of many problems? So... banks... here you have the houses you artificially created and financed.