Column: Can You Escape Your Mortgage Debt in Spain?

Spanish lenders are getting better at pursuing debts across European borders, which may have implications for foreign buyers in default on mortgages in Spain, writes lawyer and regular SPI contributor Raymundo Larraín Nesbitt in his latest column for Spanish Property Insight.

“I am always surprised by comments made by European non-residents regarding their sense of impunity on defaulting, for example, a Spanish mortgage loan agreement,” he writes.

This is a particularly important topic in the housing industry, where foreign buyers may feel they can escape the requirements and penalties of their Spanish mortgages.

“Some debtors harbour the impression that Spanish creditors either cannot pursue their home countries’ assets or else that they will lack the necessary commitment to allocate resources and time to the task,” Raymundo writes. “Whilst this may be true in some cases (small amounts owed) the truth is that this is a serious error of judgement which may come back to haunt them for the remainder of their life.”

In his column, Raymundo offers a detailed legal overview on how rulings from EU member states can be enforced in other member states on civil and commercial matters. There are two different routes for lenders to enforcing claim, either a European Enforcement Order (EEO) or Council Regulation EC No. 44/2001.

Read the full column Spanish Creditors Pursuing Debts Abroad.

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