Potential Repossessions / Handing back your keys

[Anonymous]

Hi
There is some very good advice on this forum and it is obviously a great source of support for a lot of people

But as with all related property issues please please be sensible and take the necessary steps to ensure you are 100% certain that any choice you make wont leave you in a potentially worse situation.

There are a lot of individual experiences on here of how banks have reacted to clients struggling with morgages and either looking to arrange new terms, of hand back the keys to their property – and its obvious there is not one standard response by the lenders.

This year has seen a massive increase in banks in spain dealing with these issues – and to be honest this is a learning curve for them too! So clients who have found a “laid back” approach may just be experiencing a bank who has little or no structure on how to deal with this level of potential defaults.

Be aware that you CAN have your debt follow you back to the UK, and it is happening more and more. In the past some banks would write off the debt in agreement with the client in some cases – but with the huge volume of potential defaulters and outstanding debt even the Banks can no longer absorb this level of debt……so please take care.

Also, the option of handing back your keys using the current system is generally only available to those who are NOT in arrears – so if you are currently having problems talk to the bank immediately and try to agree a way forward – a lack of communication and arrears will more than likely put a stop on any possible options other than repossession in the future.

If you have issues with the Spanish language – engage the services of someone who can help you with letters/emails/meetings etc in Spanish.

There is no doubt that we will continue to see a big rise in defaults and the worry and anxiety it causes people – you need to do all you can to protect yourselves as much as you can and keep up the communication with the lender.

Try to approach this in your mind in the same way you would in the UK / Ireland – what would you expect to happen if you walked out of your home and just left your keys in the letterbox ? This isnt intended to frighten anyone or cause any more stress – just to keep an awareness of how important it is to get this right.

[Anonymous]

@manzanares wrote:

Try to approach this in your mind in the same way you would in the UK / Ireland – what would you expect to happen if you walked out of your home and just left your keys in the letterbox ? This isnt intended to frighten anyone or cause any more stress – just to keep an awareness of how important it is to get this right.

I agree with what you write.

I have only a question: if 100K British and Irish and Germans hand the key through the mail, are Spanish banks prepared to pursue so many people abroad?

[Anonymous]

Morning – I have no way of knowing the answer to that question. I suppose it feeds back to my original comments – when the number of repossessions or defaults were low, perhaps there were more cases where banks were more willing to write off the debt – but when that number increases significantly as you suggest then the majority of banks will have no option but to pursue the debts – how they do that is another matter because no doubt they need the resources available to take on the additional work, and in the current climate that wont be easy.

At the end of the day all you can do it look to protect yourself in the best way possible, and not run the risk of being the one client that your particular bank chooses to pursue.

Only time will tell just how much time, money and effort the banks put into this – and how many clients eventually default on their mortgages.

[Anonymous]

@manzanares wrote:

Morning – I have no way of knowing the answer to that question. I suppose it feeds back to my original comments – when the number of repossessions or defaults were low, perhaps there were more cases where banks were more willing to write off the debt – but when that number increases significantly as you suggest then the majority of banks will have no option but to pursue the debts – how they do that is another matter because no doubt they need the resources available to take on the additional work, and in the current climate that wont be easy.

At the end of the day all you can do it look to protect yourself in the best way possible, and not run the risk of being the one client that your particular bank chooses to pursue.

Only time will tell just how much time, money and effort the banks put into this – and how many clients eventually default on their mortgages.

Can you be legally chased to complete on a property having paid 30%. The property I have bought is such a poor quality because the company ran into problems. I want to cut my losses and walk away without any recourse to pay more.

[Anonymous]

Morning – It will depend completely on the Contract you have beteen yourself and the Developer. Obviously if you walk away now you will lose the 30% already paid – but may be liable for further payments if the clauses in your contract relating to defaults indicate as such. You do however mention that there are problems with the developer ? You may wish to consider having someone look at your contract and at the situation of the developer – provided you have honoured the terms of your contract to date, maybe you have recourse to formally end the contract due to the developer defaulting on their obligations ? in that situation you may also have the potential to try and obtain a refund on some of the money already paid.

It is very difficult to give a answer to your question without having the contract details and the current situation of the developer to hand.

I would suggest you contact your lawyer to discuss, if you have no lawyer at present you can of course email us directly and we can contact you personally to discuss your options.

[Anonymous]

@CES wrote:

@manzanares wrote:

Morning – I have no way of knowing the answer to that question. I suppose it feeds back to my original comments – when the number of repossessions or defaults were low, perhaps there were more cases where banks were more willing to write off the debt – but when that number increases significantly as you suggest then the majority of banks will have no option but to pursue the debts – how they do that is another matter because no doubt they need the resources available to take on the additional work, and in the current climate that wont be easy.

At the end of the day all you can do it look to protect yourself in the best way possible, and not run the risk of being the one client that your particular bank chooses to pursue.

Only time will tell just how much time, money and effort the banks put into this – and how many clients eventually default on their mortgages.

Can you be legally chased to complete on a property having paid 30%. The property I have bought is such a poor quality because the company ran into problems. I want to cut my losses and walk away without any recourse to pay more.

Dear CES,

Yes, you can be sued for completion.

This happens when a developer attains the Licence of First Occupation and compels you by means of a registered letter to complete before a Spanish Notary on a certain date. If you don’t turn up they can choose to sue you as per art 1504 of the Spanish Civil Code regardless if it’s worded in the PPC or not.

Please read our forum thread on the matter for real-life examples of such cases of forced completions.

Regards

[Anonymous]

@manzanares wrote:

Morning – It will depend completely on the Contract you have beteen yourself and the Developer. Obviously if you walk away now you will lose the 30% already paid – but may be liable for further payments if the clauses in your contract relating to defaults indicate as such. You do however mention that there are problems with the developer ? You may wish to consider having someone look at your contract and at the situation of the developer – provided you have honoured the terms of your contract to date, maybe you have recourse to formally end the contract due to the developer defaulting on their obligations ? in that situation you may also have the potential to try and obtain a refund on some of the money already paid.

It is very difficult to give a answer to your question without having the contract details and the current situation of the developer to hand.

I would suggest you contact your lawyer to discuss, if you have no lawyer at present you can of course email us directly and we can contact you personally to discuss your options.

Thank you very much for your advice.

The company I was buying from is Fadesa which you will know about and I have raised issues already on this site about my situation as it seems so complex. My solicitor says we cannot be forced to complete – we are however registered as debtors not creditors which he says is a good position but to me it feels as if we are vulnerable. My added problem is that I want to buy a resale and don’t want to find that I am legally bound to this awful apartment and end up getting sued. Really difficult to know what to do. I have thought about formally getting a second opinion to give me the peace of mind. This is no disrespect to my present lawyer – more to ensure no possible error can be made again – having lost 60k euros you will appreciate we are wary.

[Anonymous]

CES – Anyone who has or is going through a bad experience at the moment property wise (and there are many of them I can assure you) are right in taking advice or seeking a different opinion – even of you can the same answer its helps to reassure you that the advice you are getting is correct, and allows you to make decisions. If your experience with your own Lawyer has been good to date, then of course you will want to stay with them, particularly if you have already invested in their services. If you would like a second opinion then please dont hesitate to contact us even if only to confirm what you already know.
Irrespective of how you choose to proceed I wish you well.

[Anonymous]

@manzanares wrote:

CES – Anyone who has or is going through a bad experience at the moment property wise (and there are many of them I can assure you) are right in taking advice or seeking a different opinion – even of you can the same answer its helps to reassure you that the advice you are getting is correct, and allows you to make decisions. If your experience with your own Lawyer has been good to date, then of course you will want to stay with them, particularly if you have already invested in their services. If you would like a second opinion then please dont hesitate to contact us even if only to confirm what you already know.
Irrespective of how you choose to proceed I wish you well.

Thanks for the advice. Really don’t know what to do. I have some options I suppose:
1. Get a second opinion – I have a copy of the contract in Spanish but not much else so would need to get all the paperwork from my lawyer.
2. I have asked my lawyer for more detailed information – and a secure assessment.
3. Try once again to get an exchange to one of the properties that are not substandard – we have been ignored for 18 months in all our efforts to make this happen. Not sure they will pay anymore attention now than before…………someone explain why when they are so cash strapped …why haven’t they wanted my money?
4. Forget about buying anything and just wait and see – spend the house cash on fancy holidays – this is favoured now by the OH!

[Anonymous]

I have just joined this forum as I need some help.

I have an apartment which I bought off-plan. CAM is the bank, and they let me have 2 years interest free, but since February they have put me on capital repayment terms which are simply unaffordable. The mortgage was €500 when the excahnge rate was high and so only around £350 a month, now it’s €800 a month with the low rate of exchange so nearer £700.

I looked into handing the keys back, and had to give CAM absoluteley everything which did show them that we simply cannot afford it, but after 3 onths they came back and said no. I have therefore proposed that we pay a token something for a couple of years and then capitalise the arrears. After badgering them for weeks, they have just come back and told me that they can’t look at reduced terms until I clear the arrears…!

Obviously if I could clear the arrears I wouldn’t be in this problem!!!

So I feel like I’m going nowhere.

Who can I talk to? Mt contact at the bank is just a bank clerk in a branch – is there a department that talks good English?!

Any ideas please?

Thanks, Graham

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