Apologies for probably going over old ground, but need to get some guidance on a way forward to our specific problem.
We bought a house in Spain in 2004 to retiring permanently. Sadly around the time we moved in 2006 my wife discovered she was going to become disabled. As her condition has worsened, we’ve had to return to the UK and now live in rented accommodation. I work as a self employed consultant but may have to give that up thus living solely on my pension, which currently pays the mortgage in Spain.
We’re trying to sell the house but no luck so far, and have now discovered there is some subsidence and the buildings insurance won’t cover it! We don’t have any funds to get repairs done and thus don’t see a lot of light at the end of the tunnel. Before we found out about the subsidence, we’d asked the bank via a friend about getting a valuation with a view to handing back the keys, but the manager’s view was that we should merely drop the price! Our outstanding mortgage is €115,000 and we’d already dropped the price to €100,000 (we’d cross the bridge on difference when we got there!) so not the most helpful advice.
Having read about dacion en pago, I wonder how receptive the bank (CAM) would be to it in our case as there is a risk of negative equity. We would be prepared, and able to pay, the difference. If they were to refuse, I fear the only option would be to give the keys back. Next and final question would then be about being chased for money. We have no assets other than a car and furniture in the house we rent. Might this fact sway the bank toward dacion?
Apologies for going on a bit! Look forward to some views.
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