We have a large interest only mortgage on our Spanish property (it doubled Jan 2008), we no longer can afford this payment. We havehad it for sale for at least 6months. We have spoken and emailed bank (Banco Pastor) they are looking into it, have little faith. the property is worth less than the current value and an awful lot less than we paid. If the bank repossess will we owe them money?
Can they come after our English mortgaged home? Would be grateful of any suggestions?
Hi Jackie, Im sorry to hear of your dilemma but it is now quite a common story. In theory yes the bank will finally repossess, if they cannot auction it for the mortgage outstanding and costs then you will owe them money and there is nothing to stop them chasing the debt into the UK
It hasnt actually happened but the spanish banks will have no choice as so much debt will be theirs otherwise.
Keep talking to the bank as you may be able to come to a solution with them.Good luck