Struggling to pay a mortgage in Spain? Take positive action now to address the problem

spanish mortgage default distress can't pay solution
Photo by Maria Ziegler on Unsplash

Are you struggling to pay a mortgage on a property in Spain? If so, you need to take positive action now to solve the problem, rather than avoid the issue as it festers and gets worse. Fortunately, help is at hand.

Hundreds of thousands of foreigners own property in Spain, many, perhaps most of them, with a mortgage on their Spanish home. And, for a variety of complex reasons, many of them are struggling to pay the mortgage, despite historically low interest rates.

Pushed into financial difficulties and Spanish mortgage default by the coronavirus Covid-19 crisis

Many people today find themselves plunged into financial uncertainty, and fearful of losing their jobs, due to the sudden explosion of the coronavirus crisis in the last three months. Through no fault of their own they have gone from comfortably paying their Spanish mortgage to financial and liquidity problems as they are furloughed, or layed off. Mortgage payments in Spain are one of the first expenses to fall into arrears as families struggle to pay more urgent, important costs from dwindling cash reserves and savings. If you are in this situation, you need to grab the bull by the horns, and renegotiate your debt with our Spanish lender as soon as possible. Ignoring the problem, and hoping it will go away, will only make it worse.

Struggling to pay a boom-time Spanish mortgage that is like a millstone around your neck

Many other people, who are not getting any younger, are still struggling to pay a mortgage taken out in the boom years, when property prices were inflated, and now find themselves with the added distress of negative equity. As decent people, who pay their debts, they are still making a significant sacrifice to keep up with their mortgage payments on a property worth less than they paid for it, all these years later. A good number of them will recently have seen their mortgage payments balloon as 15 year interest-only clauses expire. There comes a point when you have to throw in the towel. That’s the time to take positive action, rather than stick your head in the sand.

Worried about leaving a delinquent Spanish mortgage to your loved ones

When you reach a certain age, you can find you no longer have the energy and resources to cope with the anxiety and stress of struggling with a mortgage in Spain. And you start to worry about leaving a ticking bomb behind for your loved ones to sort out when you have gone. It’s a difficult time for everyone when loved ones pass away, and the last thing you want is a delinquent Spanish mortgage problem demanding all your time and attention with its cross-border creditors, complexity, and costs. There comes a point where you have to sort out the problem in Spain, rather than risk leaving it to your loved ones.

Beware wishful thinking

If you are already in arrears on your spanish mortgage, don’t make the mistake of thinking you can walk away from you debt in Spain, and the problem won’t catch up with them back home. That is wishful thinking, even if you haven’t heard from your Spanish lender for years. Slowly slowly, Spanish mortgage debts are being worked though, and debtors being pursued back home on the basis of EU directives, increasingly by aggressive vulture funds who have bought the debt. The longer you leave the problem, the more expensive it gets to sort out.

Seek expert help to solve your Spanish mortgage problem

The best thing you can do is contact third-party experts like EU Property Solutions, who have dealt with many cases like yours, and know what to do to get the optimum solution for you. Experience is the key to negotiating the best terms in this complicated situation, which is probably something you have never had to deal with before. And every lender in Spain has a different approach to dealing with foreigners who can’t pay their Spanish mortgage. Only experience of dealing with many cases helps you decide the right strategy.

The worst thing you can do, if you find yourself unable to pay your mortgage in Spain, is stick your head in the sand, and hope the problem will go away. It won’t. Take positive action now to start solving the problem and relieve your anxiety and distress. Get in touch now with experts who can help you solve your financial distress in Spain.