Legal tip 718. Are Dations still being granted?
Thursday, March 1, 2012 @ 11:33 AM
The recent advise from government to Banks is to accept Dations when debtors are unemployed and the house is the only house they have. Just yesterday, a Judge dealing with a dation against BBVA deleted almost 270K euros of debt from the debtors and asked the Bank to pay to them two months of rents for giving time to these people to find rental accomodation.
It is a very social and innovative Court decission. A great example to be followed.
If you are not under these merits ( unemployed and the house being the only house you have) it is very likely your dation will not succeed unless the remaining debt is much lower than the value of the house. Initially Banks cannot repossess houses for less than 60% of the value these houses were given when being valuated for mortgages.
If not, I am afraid, that a persistent negotiation with the Bank for debt restructuration will be the best way out as they seem to be now ready to go against UK assets too.
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"Esteros entre Chiclana y San Fernando", Chiclana, Cadiz, Spain, by jmerelo at flickr.com