Embargo on account, help??

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This topic contains 12 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 2 years, 7 months ago.

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  • #57404
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    Anonymous
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    Hello All

    The drama continues…. we now have an embargo of 283 euros added on to our mortgage debt. I am assuming this is because I told the hateful bank that we would be in Spain next month and would be able to ‘chat about it all’.

    They want us to remortgage at a higher interest rate (we are currently 2.26% and depending on Mays Euribor we will hopefully have 1.56% from July. The bank HATE this, they want us to pay them more).

    We have asked a solicitor what they think….and four days later we haven’t heard anything… I was hoping for a ball breaker type of solicitor who will bang his fists on the desk as much as the hateful bank manager will (as she’s done it many a time with me when we lived out there).

    What do you think is happening…. we have nearly 1000 euros sat in the current account but the bank now won’t use it to pay off the debt, we will then owe another 1000 euros.

    What should we do…. chase the solicitor (again) for his opinion? The bank won’t answer any questions as they say that it’s gone to head office.

    What’s the usual process…. as I know that all the immigrants in our block were not paying for about 3 years before they were asked to leave.

    We have my father in law as guarantor so I guess he’ll be receiving a threatening letter. We haven’t received anything!?

    Any suggestions?? Fight them and their corrupt ways or just try to pay off the debt as soon as we can (I reckon in 2/3 months we’ll be up to date).

    ?????

  • #85333
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    Anonymous
    Participant

    It is not clear that the amount of €283 is a one of payment on an on going basis. Are you saying that your outstanding total debt is €2000.

    Frustrating that it may sound the lawyer will present you with a bill of a similar amount. As the law stands & you know this well. You have to pay the amount or your guarantor will have to pay.

    Ball breaker lawyer. The only balls they break are the Cajones of the Bull. If your lawyer is from the same town/village you can forget it as he more business coming from the Bank than you can ever provide him with.

    If, I was you the first thing I will do is stop the direct debits for the utilities & pay them as when the bill is received. This way you will not need to keep any excess cash in the account.

    The matter may have gone to the head office. This is a classic divide & rule & excuse to charge you more.

  • #85303
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    Anonymous
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    Hi Shakeel, thanks for the reply.

    The lawyer has replied but I guess my 7 year old could have told me the same information. ‘Your case is a bit complicated’…. you would need to speak to my colleague who has more experience in these matters…. why don’t you speak to the bank yourself….

    Properly best that I do….as i’m the only one who seems to know all the details it seems. Now that the bank only have Caja Granada people there they also don’t have a clue about Caja Murcia mortgages. Also, their office system is very complicated and looks like a busy excel sheet. Maybe i’ll show them some common sense and log onto the Caja Murcia online banking from the bank managers pc to show her where we all stand 😉

    We have always paid the electricity, water etc. with another account. Any spare cents would have been eaten up previously but that has just suddenly stopped. Now there is money in the account which they aren’t taking. They still haven’t sent us a letter and my father in law hasn’t called us shouting down the phone so i’m assuming that neither does he…??

    As you say, it is a classic bank trick. They have seen that we are in debt and that our euribor rate depends on what it is in May. Someone with a calculator has sussed out that we won’t be paying them very much interest so they want to hit us with a remortgage at 5 or 6%. I’ll do all I can to avoid that! One good thing about the mortgage was that in July it should be 1.5% interest!

    So.. I’ll keep checking the online bank account for the transfer of our last funds which I did yesterday so that then they’ll have 1500 euros sat there…when we owe with their commisions and extra interest which they will obviously add on, about 3000 euros. More than half of that is our capital so i’m going to push for them to take it as their interest and see if we can clear this up. I blooming hate that bank!

  • #84566
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    Anonymous
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    Another question….

    If the deeds list the demora interest as 20,000 euros which is now listed online as ‘demora reclamado’ of 19,000 euros does that mean that if we clear our mortgage arrears in a few months will we still owe that 20k?

    Is it basically a ‘fine’ for being so bad as to have gone into arrears? Or does it only stand when in arrears and it’s in the process of being repossessed? ie if they repossess a property they add that to the debt for ‘costs’?

    Just trying to suss out our options. I really, really don’t want to have to remortgage just to clear 2000 euros as the costs would be far higher. BUT do we now owe 22,000 euros with this ‘demora’ as listed in the deeds??

    I really want to be able to buy a bit more time, say 3 months, and pay the 2k plus the ongoing payments and get back to zero without changing the low interest rate we have.

    What do you think??

  • #84404
    Profile photo of Anonymous
    Anonymous
    Participant

    Another question….

    If the deeds list the demora interest as 20,000 euros which is now listed online as ‘demora reclamado’ of 19,000 euros does that mean that if we clear our mortgage arrears in a few months will we still owe that 20k?

    Is it basically a ‘fine’ for being so bad as to have gone into arrears? Or does it only stand when in arrears and it’s in the process of being repossessed? ie if they repossess a property they add that to the debt for ‘costs’?

    Just trying to suss out our options. I really, really don’t want to have to remortgage just to clear 2000 euros as the costs would be far higher. BUT do we now owe 22,000 euros with this ‘demora’ as listed in the deeds??

    I really want to be able to buy a bit more time, say 3 months, and pay the 2k plus the ongoing payments and get back to zero without changing the low interest rate we have.

    What do you think??

  • #116936
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    Anonymous
    Participant

    An update after our visit to Spain….

    The bank manager was really nice and friendly (!) after a conversation with a cousin of my husband (who’s a solicitor in Madrid 😉 For the fee of 75 euros we have an 8% personal loan to clear the arrears. All that stress for over a year and she was nice as pie!

    At least we can move forward paying our euribor plus 1% mortgage (it’s about 0.48 at the moment!!)

  • #116982
    Profile photo of Anonymous
    Anonymous
    Participant

    Well, that sounds like good news. I hope it is. You certainly deserve some good news on this front 😉

  • #117002
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    Anonymous
    Participant

    Thanks, now we can just relax from the stress of it and pay what we owe each month. We have to sit by and watch everyone else handing their keys back so at least we should have a bit of decency from the bank.

  • #117074
    Profile photo of Anonymous
    Anonymous
    Participant

    Have you got the apartment rented out, if you don’t mind me asking? With your mortgage rate so low for the time being wouldn’t rent cover the financing cost?

  • #117079
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    Anonymous
    Participant

    We did think about it and then decided that we are lucky to have a low rate of interest so let’s just keep my sister in law going round to check it’s ok every now and again. The risk of renting is too high I think. Too many people just don’t pay as they know the law is on their side still. If we can’t hand the keys back like most other people seem to be doing then at least we can use it as ‘expensive’ storage for our clothes, books, furniture etc… We are going to try to go back twice a year so we’ll think of it as a holiday home.

  • #119363
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    Anonymous
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    Hello everyone, I thought i’d log on and give you an update. We are so very happy living in Ireland now and the children are happy in school. My Spanish husband has a job and we are able to send our mortgage payments plus all the extras such as Endesa, Galasa, Community Fees, Basura, Insurance…..etc. etc. each month. The flat is empty and until we can find someone we completely trust to rent it it will remain empty. There are so many horror stories of non payers and places being trashed. The influx of illegal African immigrants is also having a massive effect on the local area which isn’t going to help at all.

    It’s hard, it hurts, still but we are keeping going…… my father in law (our guarantor) is receiving treatment for his cancer but he still is very unwell). We will get below that magic 100,000 figure in a few months so that for me will make my eyes hurt less when I see the online banking and the outstanding mortgage amount. When we get down to 95,000 in a year or so it’ll be like starting again from the price paid for the property (in 2005!) hey ho, what’s 10 years paying for nothing….)

    We are all healthy so that is the main thing. Reality hit hard recently when a family friend aged 45 was diagnosed with a brain tumour and is in a hospice with months to live. She has three children. What is 24 years of mortgage compared to a death sentence. It’s crap to have to pay for a negative equity property which we don’t live in but not as bad as illness.

    Spain still makes me very, very angry but what can I do, i’m married to a Spaniard and we have two children. It’s not forgotten and I won’t forgive their corrupt system but I can deal with it. I have no choice.

    I just hope that everyone buying in Spain does so with their eyes and ears wide open. Don’t trust anyone, go on gut instinct and then step back and use your brain and search for the ‘what if’s’ before making a decision. Every single Brit/Irish person I know who lives in or near my husbands home town has some kind of problem with their property or deeds. The ‘no pasa nada’ mentality does matter, and matters big time when there is a problem.

    I hope that everyone else on the forum is well and weathering the storm of Spanish Property as well as they can!

  • #119364
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    Anonymous
    Participant

    Good to hear that you are doing well in Ireland. I presume there are many people there struggling with negative equity too. Take care.

  • #119404
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    Anonymous
    Participant

    Hi,

    Looks like you weathered the storm and came out the other side in one piece.

    Personally I think Spain has the worst behind it now. Confidence will grow and property prices will start to rise, in the very near future. If you have got this far then now is simply a waiting game for the upturn.

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