Are Spanish banks pursuing mortgage debts outside Spain?

[Anonymous]

Many foreigners who took out mortgages with Spanish lenders to buy property in Spain during the boom, and now can’t afford to pay the mortgage (or don’t want to carry on paying now they are deep in negative equity), are wondering what happens if the stop paying and send the keys back to the bank. Will the bank pursue them back home for their outstanding debts in Spain?

In theory a Spanish lender can pursue bad loans anywhere in Europe (an maybe further afield). I’ve heard anecdotal stories of it happening. I hear they won’t bother going after a small bad debt (not worth the cost), but will consider it if the debt is large. So if you live in the UK and stop paying your mortgage in Spain, the bank can go after your assets in the UK to settle the debt, in theory at least.

More and more people have been asking me about this recently. It’s one of those things I can’t answer without feedback from people in this situation. Has anyone been in this situation, or know of anyone in this situation? How are Spanish banks responding? Has anyone been pursued outside of Spain?

Mark

[Anonymous]

very, very good question!! – don’t ever, ever underestimate the Spanish system; don’t think they are incompetent 😉 😉 😉 😉 they will find you, and a few years later attach your assets 😥 😥 😥 just when you think you’ve got away with it, they’ll arrive!! –

[Anonymous]

Don’t know about mortgages but they are chasing unpaid community fees, using British law firm.

http://www.surinenglish.com/20130425/news/costasol-malaga/lawyers-chase-british-property-201304251242.html

[GarySFBCN]

@badab1ng wrote:

@badab1ng wrote:

Don’t know about mortgages but they are chasing unpaid community fees, using British law firm.

As well they should.

[Anonymous]

And I hope they use similar companies in Morocco and Ecuador as well then!!

[Author]

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