What happens if you stop paying your overseas mortgage in Spain?

IF YOU DON’T PAY YOUR OVERSEAS MORTGAGE, then it will likely have the same consequences if you didn’t pay your mortgage in your home country. Many with overseas mortgage debt in Europe seem to be under the illusion that not paying the mortgage will have no consequence to them – this is incorrect.

EU Property Solutions regularly deal with the following types of cases:

  • Borrowers with a mortgage greater than the house value stop paying and leave the keys with the lender.
  • Many of these borrowers do not realise they are in Negative Equity and are putting themselves in serious jeopardy – as the outstanding debt can be aggressively pursued back in their own country.
  • If you don’t pay your mortgage, arrears will mount on your account and following a period of greater than three months your lender can commence repossession proceedings.
  • Once repossessed your lender will then market the property. Many properties sold in possession are sold at a far reduced rate value, often around 60% of open market value.
  • If the bank sells the property, you will be left liable for any shortfall balance if the property was in negative equity and this can be collected by lenders in your home country.
  • Increasingly we see instances where lenders have appointed UK Solicitors/Collection Agents and placed a 2nd charge on a borrower’s home.

It is essential not to ignore your lender & to liaise with them if you have any issues paying your mortgage, if not your home assets are at risk.

We assist borrowers with property debt issues across Europe. Our main areas of expertise are in Spain, Portugal & Cyprus however we are obtaining successful settlements across the continent.

If you or anyone you know is having debt issues in Europe, please call us today on +44 (0)330 124 1230 to arrange a free case review or visit our website.

* This article has been written by a third party not owned or controlled by Spanish Property Insight (SPI).
SPI disclaims any responsibility or liability related to your access to or use of any third party content.

About EU Property Solutions

EU Property Solutions assist borrowers with overseas property issues across Europe. We specialise in the Spanish Property market solving Negative Equity issues. Our team are experts in assisting overseas borrowers out of Negative Equity and have achieved results with numerous Spanish lenders. We pride ourselves on the relationships we have built with our clients and the institutions we work with thanks to the efforts of our legal team in Spain. EU Property Solutions offer a free initial consultation and tailor our advices to your circumstances. Our UK office base is in Leeds with other locations in Belfast and San Pedro on the Costa del Sol.