January 29, 2009 at 5:07 pm #54696
Firstly let me say what a great site in getting answers to questions which are honest and unbiased for all of us people who tried our best with the information we had at the time to secure a pension fund for ourselves in later life which has gone totally wrong.
My situation is that i have a 2 bed 2 bath appartment in Mijares complex Riviera del Sol which i have a 155k euros mortgage on interest only payments. I have borrowed against my property in the UK to fund the venture and have a mortgage of £125k. My property in the UK is currently valued at £150k.
I have tried to sell the property with Direct-Auctions in Marbella but it only got up to 90k euros ( Hi Inez ).
I offered this to Ibercaja the bank but they said NO, so i instructed my lawyer to ask the bank to reposess as i cant see where i can go from here.
I do trust my lawyer but have a feeling that because i can’t pay the bank he thinks he won’t get paid so is quite happy to leave it at that, however as time passes debts increase and i’m concerned that in 18 months time i am going to get a knock on the door for my UK property to be reposessed.
I suppose the only thing going for me is the fact that i have two young childeren so eviction would be quite difficult.
I have thought of selling up and dissapearing but since the bank have my national insurance number i will allways be traceable in the UK.
I have very little faith in anyone at the moment as i just see it as a way of making money out of the vunerable, I am talking to the Ombudsman here in the UK but again unable to get answers as we are talking about two different countries, so to sum it up i think it’s fair to say that i’m in a hole with my back against the wall.
I don’t want to ignore this situation that i got myself in as that would be so irresponsible, however i’m now at the end of the road and unsure of where to go next.
If anyone has any constructive lines of thought i would be all ears.
January 29, 2009 at 5:45 pm #89736
If you have equity in the property in Spain then you have the same possible option as the poster “pazaz” i.e. dacion en pago, see below a few threads.
I don’t think that you (or your lawyer) can instruct a bank to repossess, you would have to default first.
January 29, 2009 at 9:00 pm #89744
Maybe it’s just the way I’m reading your query but would you clarify whether it’s a Spanish or UK mortgage under discussion.
and if you don’t have confidence in your current solicitor then instruct a new one ASAP and in your case it might be beneficial to instruct a solicitor holding practising certificates in both UK and Spain.
January 29, 2009 at 11:05 pm #89748
i have a 155k euros mortgage on interest only payments
I think he says quite clearly thats its a spanish mortgage
January 29, 2009 at 11:27 pm #89750
marios you’re right – too late at night.
borrowed against my UK property
” confused me.
January 30, 2009 at 9:41 am #89758
The mortgage i have is a Spanish one and if i owe more than the property is worth i think it’s safe to assume that there is no equity in the property, so options are very limited.
I defaulted on my payments in Oct 08 so it’s now been 4 months, therefore regardless of wether i instruct the bank to reposes or not i would suggest that they already have started the process!
One other point i would like to make is that my lawyer has said don’t worry as i have no equity in Spain and very little in UK so the bank would deem it not worthwhile or cost effective to evict a young family (if they could) to redeem what would be a small percentage of the debt, however how could i ever get that in writing from the bank in order to move on with our lives and not have to worry about the next knock on the door?
The extremely sad thing about this is i’m probably only the tip of the iceberg………….. hindsight eh………
January 30, 2009 at 9:55 am #89760
It does rather seem that you have very little in the way of options. Try not to let it worry you excessively, what will be, will be.
Try to take it in your stride, I’m sure things will work out just fine in the long run. And don’t forget that there are many in your situation.
I recently learned that one bank simply refuses mortgages to anyone who is not Spanish, as they have had 25% of expat borrowers defaulting. I appreciate that this seems like little consolation, but it sometimes helps to know you are not alone. I also seriously doubt that the banks could cope with repossessing all the homes that will be in default, and unless there is a reasonable level of equity I cannot see what they would gain.
January 30, 2009 at 10:12 am #89761
Thankyou for your kind words, it really does make a difference.
One other point that i would like to make is that i don’t want to mislead anyone about my lawyer, i do trust him it’s just that Manyana thing again!
Maybe spain is more laid back than me and after loosing an aweful lot of money i am just looking for closure.
Many thanks to everyone and good luck with your own dealings.
February 8, 2009 at 1:34 pm #90101
I am still not happy about the situation i’m in and more i think about it more i cannot accept ‘dont worry about it’ or ‘what will be will be’ as this is going against all advice i have read which is DEAL with it! dont bury your head in the sand because it wont go away.
Can anyone reccommend any English lawyers who deal with Spanish conveyancing especially this kind of situation ?
February 8, 2009 at 1:40 pm #90102
Mark has a list of english speaking solicitors here, maybe that will help a little.
February 17, 2009 at 11:03 am #90245
The simple answer is to sell one or other of the properties and remove your debt. However, its probable that you can’t do either unless at a substantial discount to the mortgage. You can negotiate with the bank on the basis that they accept the total of what you can get and cancel your total debt, or be left with the costs of recovery and the loss at the end anyway. Ideally, if you can hang on for a few years the market will surely return and if you have a saleable property in either UK or Spain you should be able to get out with some dignity, but probably no money! Go to both banks (I’m assuming that you have a mortgage on the one in the UK) and ask to extend the loan or make it interest only for the next few years or whatever method they can suggest that will let you bring the monthly payments within your budget. You could even ‘give’ the property to the bank and take a lease which will give the bank an investment that is at least covering its costs. Definitely work at it so that you are treated as an individual and not just lumped in with all the other ‘bad boys’ in the auction process.
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