Spanish Property Insight › Forums › Spanish Property Forums › Real Estate Topics, News & Discussion › Spain to ‘deep clean’ it’s financial sector. › Re: Re: Spain to ‘deep clean’ it’s financial sector.
Thanks for all the input everyone.
Tricky situ though.
My husband is Spanish, his name is on the deeds with his parents (now just his father living) as guarantor.
I understand that my father in law could start moving his redundancy money into other peoples names, his mortgage/property but if anyone knows local Spanish small town people they’d know that even the mention of this would scare the heck out of him. He just wouldn’t understand it or want to even consider it.
The flat was bought in 2005 with 100% mortgage with Banesto (thanks for that bank manager suggesting that my husbands savings of 20k go into the pot rather than as a deposit, first error).
In 2006 the new Banesto bank manager suggested we remortgage with his friend, second error, why didn’t we suss that Banesto wouldn’t want us to go to CajaMurcia?? Anyway, they made it all sound so great. We had 5000 euros of credit card debt and with this new mortgage we’d add that into our mortgage payments for only 50 euros per month extra.
The ‘lovely’ Jorge came round to the flat with his friend to value the flat. I had my baby son in my arms are he did it. He knew he was conning us and still went ahead.
The same Jorge came round in person a few weeks later with an advance on the mortgage of 10k in cash. What great service, but a bit strange we though, why couldn’t we go into the branch? That turned out to be 13,000 euros on the bank system. 3000 euros commision for driving for less than 30 mins. Nice work if you can get it.
The mortgage was taking a long time to be finalised until they finally said that due to my husbands wages not being enough he’d have to ask his parents to sign as guarantors. They did this and afterwards found a loan at Banesto in my father in laws name for 15,000 euros. The bank manager had done a runner and the new manager said that there were two blank cheques taken out.
The current Banesto manager says that she has a file of other things Fernando did but since he stole from customers and not the bank then it’s not their responsibility (!!!)
Anyway, we then had a 120,000 mortgage, ended up paying more than the 50 euros a month more than we previously had. My parents in law had to clear the 15,000 euros (which we still now owe them).
The banks conned us. We didn’t get the flat to make a quick buck. The first price was 95,000 euros. If say the 20k savings was used as a deposit we would have started with a 75k mortgage.
We currently owe 108,000 euros and the banks have now added to our online banking page 22,000 euros in the reclaim section. They were the ones who valued the property at 185,000 euros (on the deeds we have). We only needed 5k to clear the credit card!!! We didn’t get any of the extra cash, it was them who creamed it off. We feel so foolish.
We can’t hand the keys back as the bank will embargo my father in laws redundancy money directly from his bank account. They can’t do that, well I wouldn’t put it past them!!! They want our money because they know so many others have walked away.
Dacion en pago isn’t an option for us whilst we have a guarantor. What he guaranteed the mortgage with I don’t know, where would it be stated? My father in law used to earn good money, 2 or 3000 euros per month after 30 years in a factory. If he’s now not working is the guarantee not valid if we can prove that he actually can’t pay? Is his redundancy safe? I have heard that his pension is?
Other examples of banks behaviour that I know:
Friend was behind on mortgage, she’d given her parents address in UK at first when buying the property. The bank wrote a letter, in english, to her parents highlighting that their daughter was behind on the mortgage. They weren’t guarantors, this was just heavy handed.
A guy was behind on mortgage with CAM bank. They’d call him at 4am to ask when he was going to pay money in.
Our bank send letters to my mother in law separately from my father in law. They know that she sadly passed away but still send the letters.
We just have to pay. Somehow. If there is a way of just paying when we can we’ll pay. I hate the stress of them constantly chasing us when they conned us in the first place (well, people representing the banks). So many need to be in prison for what they’ve done.