Legal tip 1101. What to do if the Bank refuses my keys back?
Monday, February 3, 2014 @ 1:36 PM
Well, that is not the end of the story and again, Banks are always below Rule of Law so, the battle will keep going.
How is that?
It is important that you keep good control on steps made by the Bank after the amicable keys-back offer refusal and once the enforecement-auction procedure starts.
You need to monitor if the enforecement procedure is being done according to Law, if auction is being convoked legally, if value given to the property for auction is correct, mainly if Banks are respecting the minimums stablished by Law as a barrier for them not to bargain with mortgage debtor rights.
Limits are calculated in relation to a big amount the Bank wrote in the mortgage deed as value for auctions, which comprises capital + delay interests+ legal costs and as such is, obviously, much higher ( like a 40% more) than the amount you actually received as a loan. If your current debt is between 50% and 70% of that big value, and depending on if you are resiodent or not, your possibilities for defence are quite strong.
In the worst of the cases, after a good, thorough control of the proces, you will end up with a residual debt ( of 10-15% of loan) you could be paying in a long term period. A quite considerable solution!
There are always arguments before a standard denial by the Bank. Keep the fight up!
Terra Alta, Tarragona, North eastern Spain, by SantiMB, at flickr.com