Help advice spainish mortgage in arrears

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This topic contains 6 replies, has 4 voices, and was last updated by Profile photo of katy katy 6 years, 1 month ago.

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  • #55898
    Profile photo of Anonymous
    Anonymous
    Participant

    Hello folks

    All comments appreciated.

    I have a mortgage in Canaries for 100k repossessed apartments in complex on sale for 59K

    I pay interest only on the mortgage, my genuine arrears are 5k and Solbank have added 3k in their own legal fees.

    I had an agreement for interest only last year but when i arrived at notary there was a loan for arrears that was wildly expensive and stupid so I didn’t sign. All travel ect at my expense really bad form from local branch

    I continue to pay I heard 2nd hand that while you continue to pay monthly that Solbank cant get a repossession order they would be mad to repossess this the apartment complex is a mess the community is a disaster and they have approx 30 to repossess there already all full of squatters.

  • #101068
    Profile photo of Anonymous
    Anonymous
    Participant

    Sorry to hear your problems. My cmments are in block capital.
    comments appreciated.

    I have a mortgage in Canaries for 100k repossessed apartments in complex on sale for 59K.

    OK, HOW MUCH IS YOUR EQUITY, I.E. IF YOU WALK AWAY HOW MUCH WILL YOU LOSE ?

    I pay interest only on the mortgage, my genuine arrears are 5k and Solbank have added 3k in their own legal fees.

    HOW MUCH YOU PAY PM & CAN YOU AFFORD IT IT ? HOW LONG WAS THE INTREST ONLY MORTGAGE OFFERED USUALLY ITS THREE YEARS. WHAT IS THE PERIOD LEFT IN YOUR MORTGAGE.

    I had an agreement for interest only last year

    FOR HOW LONG & AT WHAT RATES ?

    but when i arrived at notary there was a loan for arrears that was wildly expensive

    ARE YOU SAYING THAT BECAUSE OF YOUR ARREARS THE BANK HAD INCREASED YOUR RATES. THEY COULD DO THIS AS YOU HAVE NOW BECOME A BIGGER RISK NOT WITHSTANDING THE GENERAL FINANCIAL CONDITIONS.

    and stupid
    SORRY, DO YOU THINK THE MESS WE ARE IN IS CREATED BY STUPID PEOPLE. SORRY ITS THE CONSUMER OF THESE PRODUCTS WHO FALLS INTO THAT LEAUGE.

    so I didn’t sign.
    IT SEAMS YOU DID THE RIGHT THING.

    All travel ect at my expense

    IN SPAIN THEY DO NOT LIKE TO GO INTO DETAILS WHICH DOES NOT AFFECT THEM. WHICH I SUPPOSE IS FAIR ENOUGH AS ITS THE OLD ” BUYER BE AWARE” THE REVISE OFFER THEY MADE YIOU SHOULD HAVE CHECKED BEFORE YOU WENT THERE. IT IS NOT THEIR OBLIGATION IF A BORROWER LIVES OUTSIDE.

    really bad form from local branch

    PROBEBLY A NORMAL PRACTISE.

    I continue to pay I heard 2nd hand that while you continue to pay monthly that Solbank cant get a repossession

    NOT SURE. PLEASE GET LEGAL ADVISE. AS YOU ARE NON RESIDENT & YOUR FAMILY WILL NOT BE THROWN ON THE STREET. THE NORMAL PROTECTION MAY NOT APPLY. I AM SURE THAT ANY ARREARS ON YOUR MORTGAGE IS BEING CHARGED PUNATIVE INTEREST RATES

    order they would be mad to repossess

    DO NOT APPLY ANY RATIONAL WITH THE SPANIARDS. IT DOES HELP TO DECLARE ANYBODY CLINACALY INSANE AS FAR AS YOU ARE CONCERNED.

    this the apartment complex is a mess the community is a disaster
    MOST COMMUNTIES ARE A DISASTER, YOU ARE IN GOOD COMPANY.

    and they have approx 30 to repossess there already all full of squatters.

    THEY WILL REPOSSES & TAKE THE HIT. MOST WILL BE SOLD TO BANK CONTACTS ETC. AS THERE IS LITTLE OR NO TRANSPARENCY. IF I WAS YOU & NOT KNOWING YOUR CIRCUMSTANCES I WOULD CUT MY LOSSES & NOT THROW GOOD MONEY AFTER BAD.

    I HOPE IT HELPS. I AM SORRY IF I HAVE NOT BEEN MORE COMFORTING.

  • #101082
    Profile photo of Anonymous
    Anonymous
    Participant

    @kathy2 wrote:

    I have a mortgage in Canaries for 100k repossessed apartments in complex on sale for 59K

    What did you pay for the property in total?

  • #101300
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi

    It cost 120 plus 12k expenses.

    I owe 100k plus arrears.

    So over all you are looking at 40k

  • #101310
    Profile photo of Anonymous
    Anonymous
    Participant

    Your cost was €120k + €12k= €132k

    Mortgage €100k +€8k= €108k. Thus leaving you with an equirty of €12k in theory (The legal cost taxes are not a securty for the lenders )

    Legal: stamp duty/VAT etc. – €12k
    Loss in value (€120-€59)* – € 61k
    *Your stated MV €59k.

    A loss of €73k. It is now your choice if you wish to throw good money after bad & your view of when you feel that the market will recover & you should be able to breakeven on price/legal fee stamp duty.

    In order not to confuse the issue I have not brought into the equation the service charges/gastos de communidad, and the drop in £= € exchange rate that you need to buy to service this & the instalments.

  • #101309
    Profile photo of Anonymous
    Anonymous
    Participant

    Well

    I do manage to keep it rented most of the time and I have built up a small group of other owners in the complex so I rent theirs as well so get a little commission. It keeps me busy and so far I have not minded doing it. It might just about cover its self in the long run an I can build up a little business.

    If I could get out of my current hole I would buy another one in the same complex and if I got that one at rock bottom price then they would not have to appreciate as much for me to break even if you know what I mean. At the moment thats a bit of a pipe dream but I am working hard on getting myself back in the game.

    The cost was 120 the capital and interest repayment was 635pm over 15 years.

    For the past year I have paid solbank interest only 350pm they say I now have arrears of 8k and am adding to it. They added 5k in charges of their own as they do. The interest only is euribor plus 1% but they have a minimum of 4% in the very small print which is where we all got caught out.

    solbank claim the passed on my file so I followed up and got an email from their lawyer. So I got a spanish lawyer to stop the repossession proceeding, I can never be sure if these actually started and she said I would have to pay at least half the arrears to get it on an proper interest only. She also said they couldnt add those charges legally and I’m not liable. They are telling me they have haulted proceeding for 3 months.

    I will go out there for christmas and do my usuall round of calls!! so far I have met my lawyer once and I forward and CC her everything.

    I could give them 3k but they might take it and go ahead to court anyway, I have found Solbank terrible so far, or worse try to get me to pay another 1k for a notary or some other rubbish that I don’t have.

    Is there anything to be gained by continuing to pay the interest only, and trying to hold onto to it.
    Would a spanish judge let them have it while I am still paying if it goes that far?

  • #101319
    Profile photo of katy
    katy
    Spectator

    http://www.spanishpropertyinsight.com/buff/2010/10/22/spanish-home-repossessions-reach-record-level-putting-pressure-on-the-market/#more-5060

    Have you read this in Mark’s section? Says that foreclosures can take up to 2 years! One bank repo we bought in the 90’s had been lingering for 6 years according to papers lying around the house and the bank had still not taken the final step of reposession until we bought.

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