Re: Re: How is Spain going to deal with Negative Equity?

#102881
Anonymous
Participant

@peterhun wrote:

Jonas, its best to end this discussion. The fact is Spain will do nothing about negative equity so there is no point arguing about it.

I agree with you lets end this discussion as it is going no where. But we will have to disagree on the fact that Spain is not helping those who are struggling with their mortgages. I know of quite a few people in Spain who have had their 2 year interest only repayments extended by another 2 years, so a total of 4 years paying interest only and stalling their repayments on their mortgages. So I think the banks are helping people to save their homes already!
Which is great news for those struggling to keep up the repayments.
So to any distressed sellers reading this, go to your banks and ask them to sort out a “carencia” (I will start a thread on this) this means that you only pay the interest you owe and the stop the repayments for you. Normally this is only for a total of 2 years, but once the two years is up, if you have been paying that ok, they will extend it for you. It is at a cost, but it helps so you don’t have to sell your property at a loss and you can therefor keep hold of it for at least 4 years so they don’t have to repossess you.
The bank manager has informed me, today funnily enough, that they are looking into doing this to avoid a reposession as that is the last thing they want to do!
So great news for all those trying to sell because they can’t affor to pay! 😀