Legal tip 1342. STRUGGLING with Mortgage debt in Spain?
Saturday, November 14, 2015 @ 4:04 PM
TEAPOT: STRUGGLING WITH MORTGAGE DEBT IN SPAIN?
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How to deal with the Bank for a win-win 100% mortgage debt settlement
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The Spanish Government protected mortgage debtors in a very nice and radical way back in 2013 as the existence of a clear unbalance between Banks and debtors was evident to them. Good policies!
So, making use of these rules, you can negotiate a settlement with the Bank for the benefit of both you and them: you get out of an unbearable mortgage loan and they get ownership rights on a property with no need of judicial action and costs.
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What numbers do I need to make for knowing if I am eligible?
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Auction value of a mortgaged property is a high value compounded by: Principal amount + Interests (ordinary and delay interests) + Legal costs
So if a Bank lent to you, say 150k euros , the auction value of the property may well be in the region of 250k.
Law 1/2013, of May 14th for protecting mortgage debtors established that repossession of a property by a Bank if auction did not have qualifying bids, must be for at least 70% of the auction value of the property (if the house was a permanent home of debtor) or for 50% of said value ( if house is not a permanent home)
In many cases outstanding debts equal that 50% so, a settlement can be achieved.
- WHAT COSTALUZ CAN DO FOR YOU?:
If you or any of your friends is struggling with mortgage payments in Spain, and want a clean agreement with the Bank to clear the debt, we will be very pleased to appraise possibilities for this settlement out of Law 1/2013
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Hayedo (beech) of Tejera Negra, Guadalajara, Castille-La Mancha, Centre of Spain