I have a property in Spain which I bought with my wife. The property is now worth about £30’000 less than when I bought it about 2yrs ago. I still live in England (renting) and this apartment was meant for holidays and retirement.
I am now divorced and, due to the exchange situation, I am paying almost £900 per month for the Spanish Mortgage as well as £300 per month for the english bank loan to provide a deposit – all for a flat worth only £80’000 max. Things are getting pretty desperate!
I am considering permanently defaulting on payment and just cutting my losses. I have asked my Spanish lawyer what would happen. She merely states that the property would be repossessed and sold and that I would owe the bank a lot of money.
*** However *** She states that it is unlikely that I would be pursued for the money in England and that it would be written-off and all that would happen is that I would have a bad credit rating for loans in Spain from now on (and would probably be a fool to ever visit Spain again).
I must say I can live with that. However, does anyone know if this is correct? Can I simply walk away? I know I still have my english loan for the deposit to pay (which I can live with). Is there anyone else out there who has simply defaulted and stopped throwing good money after bad?
Any advice would be appreciated.