EU Property Solutions- Experts in all Spanish property issues

Mortgage arrears / Community fees mounting up?

People daily who are in significant mortgage arrears and have missed community fee payments are becoming more and more confused with their options and how to deal with it. Many borrowers who purchased properties in Spain were not aware of the associated costs. Community Fees and IBI taxes are fees external to mortgage costs in Spain. These additional fees have resulted in significant stress for thousands of people since the property crash in 2008.

Community fees are owed to the Community Presidents in Spain for the up keep of communal. These Presidents are authority in ensuring the community you have purchased in is visibly up to scratch e.g. maintenance of common areas, cleaning of swimming pool and general grounds keeping. It is important for those whom have purchased within a community to meet these fees.

What happens if I fall behind?

If your payments fall behind Presidents can proceed with legal action. Presidents have the authority to instruct debt collection agencies in UK / Ireland to chase owed debt.  These debt collection agencies will enforce an attachment of earnings order or put a charge on your home.

They can legally withdraw outstanding debts directly from salaries or force you to sell your UK / Ireland home. As with community fees, if you are in mortgage arrears you can be pursued back in UK / Ireland. If you ignore these debts you are putting your home and earnings at risk.

For many struggling with mortgage payments and community fees, the reality is they are sitting in negative equity.

Do Not Ignore This: There Are Always Options Available!

We advise you seek professional advice from a company who can work with you and your lender to ensure an amicable solution is achieved. In many cases this involves disposal of the negative asset and negotiation on the shortfall. Typically, from experience in negotiations the settlement is around 10% of the outstanding shortfall.

If you find yourself in a situation of mounting Mortgage arrears and outstanding community fees, then please seek advice from professionals. Simpily Google EU Property Help and many will appear in the search.

EU Property Solutions Team

Are You a Mortgage Prisoner?

A lot of people stuck in Negative Equity call themselves “mortgage prisoners”. They believe that as they have negative equity they have no option but to continue to pay the property mortgage and continue property ownership. Simply that selling in negative equity is not an option.

From our experience, we can tell you this is not the case. In some instances, the property can be put up for sale and the shortfall settled with the lender, however, in other instances there are legislations involved restricting options to sell. So, it is always it is essential you seek professional advice to understand your circumstances and what options you have.

Many borrowers purchased property in Spain pre-2008 during a boom and now find themselves in negative equity following the much documented “crash”. Many ask “can we sell?” and in response, it depends. Sales are dependent on a variety of factors including your lenders protocol, your circumstances, and the property itself etc. When you approach any professional they should relay all the options available, specifically those related to your lender, ensuring you have advice tailored to your circumstances.

Locations of Worst Case Negative Equity

Specifically, in Spain many are finding their properties in Negative Equity, Especially those in the following areas/developments:

·         Bahia de Casares

·         Duquesa Golf

·         Alboran Hills

·         Manilva

·         Miraflores (Mijas)

·         Benatalaya

·         Princess Kristina

·         Sotegrande

·         Corvera Golf

·         Polaris World

In summary, you may be in Negative Equity but in some instances, you can sell but in others you cannot. BUT, no one is a mortgage prisoner and there are numerous options available providing you seek expert advice.

“Can I reclaim a deposit for an unfinished development” is becoming a question of many lately.

You can now reclaim deposits on Unfinished Developments ...

Pre-2008 many property investors purchased unfinished off plan properties in Spain. It was an attractive proposition and purchasers where asked to put down a deposit. Unfortunately, unfinished developments litter parts of Spain and those who put down deposits lost their funds and their dream property. You can now reclaim deposits paid.

Now is your chance to reclaim your deposit!

Following a recent high court ruling it is possible for borrowers to get back their deposit which was lost during the property crisis in Spain.There is now help to ensure wronged investors can reclaim deposits.

How much can I reclaim?

In most instances, you can recover 100% of your lost deposit plus interest accrued from the date of payment. If you can provide evidence of the monetary transaction and purchase contract then this should be sufficient to commence proceedings.

How will the process work?

1. Seek advice from industry experts -  ensure you meet the team prepared to take your case on and that they are willing to work on a no win no fee basis.
2. Gather all documentation needed i.e. proof of payment and contract for the transaction.
3. Finalise Spanish Power of Attorney and small appointment fee to file documents and allow representation in Spain.
4. Wait for your Refund  and move on with your life!