[Anonymous]

We are in arrears with our mortgage. Does anyone know what would happen to us if we let the bank repossess?

[Anonymous]

Im sure you will have other responses, but has the bank actually contacted you to inform you that it is calling in the debt??

If so they will auction the property to recover at least the amount of the debt plus there will be costs.

But, my advice would be to try all you can to sell the property yourself even if you have to pay, it is likely that you can receive at least something back, even after paying any taxes ,otherwise if the bank takes it, probable you will have nothing and possibly costs to pay. You may have to deal with agency commissions but it has to be a better option for you under the circumstances.

Sorry to hear of your difficulties I hope that it can work out for you soon, all the best
😕

[mariadecastro]

After six months of arrears the bank will bring a judicial action that once is admited to procedure will lead to the seizure of the property or the guarantee for the payment of the mortgage. The Mortgage Act allows the owner to present a proposal of payment including the contracted debts and the costs of the judicial procedure, which will anull the lawsuit. If the lawsuit go finally ahead, the house would be sold at auction, and if it is obtained a higher amount then the debt, that will belong to the owner.

[Anonymous]

Maria,

I presume if the money realised is less than the debt the balance of the debt remains payable and so the Judgement would not be satisfied.

If so the bank can go for their English assets and income. One way is by getting the Judgement registered under the Civil Jurisdiction and Judgments Act 1982. There are others. They can then seize bank accounts, property and wages. As it happens I am in the process of getting a English Judgment registered in Spain!

Cathy
Sorry to here of your position. Banks are flexible UNTIL they consider the situation hopeless and then they are RUTHLESS.

To offer decent advice needs far more infomation than you provide but simply handing a property back is rarely if ever the best option.

Best
Loco

@mariadecastro wrote:

After six months of arrears the bank will bring a judicial action that once is admited to procedure will lead to the seizure of the property or the guarantee for the payment of the mortgage. The Mortgage Act allows the owner to present a proposal of payment including the contracted debts and the costs of the judicial procedure, which will anull the lawsuit. If the lawsuit go finally ahead, the house would be sold at auction, and if it is obtained a higher amount then the debt, that will belong to the owner.

[Anonymous]

Thank you to everyone for their comments and advice. The bank have phoned us as we are just about to go into 3 months of arrears. We just have no way of paying this and we have no bookings either. We have had the property for one year and only had one guest. We have a 95% mortgage and the valuation was done by the bank so I am guessing that if it was sold at auction there would be an outstanding debt. We have put in air conditioning and everything that is needed to let it out to the holiday rental market. The only other thing I thought of the other day is an interest only mortgage but I don’t know if this is something we can get.

It is just so frustrating because we weren’t even asked by the bank what amount of mortgage we wanted. They didn’t tell us what the interest rate would be or how much our monthly payments would be. We signed over power of attorney to the solicitor and the next thing we knew we owned a property. Infact I didn’t even know that we had completed until I phoned to say that we didn’t want to go ahead with the purchase because it was July and we felt it was too late to advertise. I was informed that we had completed two weeks before! I then found out that the person I had been dealing with in the solicitors office is married to the bank manager!

Thanks again

Cathy

[Anonymous]

Cathy,

It all sounds like a horrible situation. No doubt you were seduced by the estate agents’ rental projections.

Just a thought, but have you considered a ‘Long Term’ rental?

[Anonymous]

David

Yes I have thought of long term but don’t know how to advertise it. I thought that would be something for the winter. I do have the apartment with an agent so I will mention that to them. Thanks very much for the thought. I had put it to the back of my mind because I have been wanting to get the higher summer rentals but at this point it would be great to know that I had an regular guaranteed income even if it is lower. The mortgage is definitely too high but I don’t know how I’ll get around that at the moment.

Thanks so much for your response. I can’t tell you how much it means. I am so worried. I’ve recently had a baby and I just wish I could spend some happy time with her instead of trying to figure out how I got us into this mess and how to get us out of it!

Cathy

[Anonymous]

Loco

How can I get decent advise?

regards

Cathy

[Anonymous]

If it’s on the Costa del Sol, most people use the SUR to look for places to rent long term. There is demand for long lets but I doubt the amounts would cover a 95% mortgage, depends of course on how expensive the property. 11 month contracts are the norm due to tennants rights.

You can get an idea of prices charged here
http://www.surinenglish.com/market.php?seccion=Every&seccion2=PROPERTY%20TO%20LET

[Anonymous]

Sounds more like your lawyer got you into the mess by not informing you about the banks charges and commision and, more importantly, not informing you that you had actually completed!!

I’d PM Maria, Draken or Cesar and ask their advise about this, I can’t believe the lawyers can organise you mortgage without informing you of the agreement, but I guess if you gave them power of attorney they could organise whatever that allowed them to (does that make sense!).

Have you explained to the bank that you had no idea of the rates etc…?

Good luck, enjoy your baby!

Heather

[Anonymous]

Thanks to you both.

The apartment is actually in Los Nietos in Mar Menor, Murcia.

I know that the solicitor should have done a better job but my experience is that it is very hard to do anything about it. We should have found our own solicitor as this site keeps advising everyone. PLEASE TAKE NOTE! If only I had known about this site then.

If we do long lets we definitley won’t cover our mortgage. Our fixed rate comes to an end in July as well. Does anyone know the best way for us to remortgage fi we decide to go this route?

Kind regards

Cathy

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