03 Jun 2013 7:16 PM:

Hi Roly2

Thank you for the reply to my post.  An interest only option is well and good.  However, it does not alleviate the problem and it will also add extra repayments to make up the difference on the property.  I thank you for your concern.  My only comfort is that I know I am not on my own in this situation, as there are 1000's of people in the same boat.

Thread: Handing back the keys to the bank.

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03 Jun 2013 6:08 PM:

Hi

I need some advice on my options regarding my mortgage in Spain.  I am seriously thinking of handing the keys to the bank and walking away.  Is this possible and would there be repercussions in doing this?

Basically I purchased the property over 6 years ago.  The price was €198,000.  I got a mortgage for €152,000.  The property is now in negative equity and is worth €95,000 according to similar properties I have seen in local estate agent windows.

I am unemployed as past 4 years, and I have not missed any payments to date.  Although, I am really struggling to keep these payments up.  If I continue to meet the mortgage, and going by todays repayment rates, I will end up paying the bank €244,800 plus €54,600 already paid off the mortgage.  Add this to my deposit, the property will cost in the region of €345,400, which is quite ALARMING!!

I know I will be losing out on my deposit.  But is it really worth continued paying for a property that is costing over 3 times more than what it is worth, when I realistically cannot afford to pay for it and enjoy it.

If I were to hand the keys in what would happen with Community Fees that are also up todate and utility bills.  Can the bank chase me for the debt back in Ireland.

Any advice would be greatly appreciated.

Thread: Handing back the keys to the bank.

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