EU Property Solutions- Experts in all Spanish property issues

IF YOU DON’T PAY YOUR OVERSEAS MORTGAGE, then it will likely have the same consequences if you didn’t pay your mortgage in your home country. Many with overseas mortgage debt in Europe seem to be under the illusion that not paying the mortgage will have no consequence to them – this is incorrect.

We regularly deal with the following types of cases:

• Borrowers with a mortgage greater than the house value stop paying and leave the keys with the lender.
• Many of these borrowers do not realise they are in Negative Equity and are putting themselves in serious jeopardy – as the outstanding debt can be aggressively pursued back in their own country.
• If you don’t pay your mortgage, arrears will mount on your account and following a period of greater than three months your lender can commence repossession proceedings.
• Once repossessed your lender will then market the property. Many properties sold in possession are sold at a far reduced rate value, often around 60% of open market value.
• If the bank sells the property, you will be left liable for any shortfall balance if the property was in negative equity and this can be collected by lenders in your home country.
• Increasingly we see instances where lenders have appointed UK Solicitors/Collection Agents and placed a 2nd charge on a borrower’s home.

It is essential not to ignore your lender & to liaise with them if you have any issues paying your mortgage, if not your home assets are at risk.

Banco Halifax Hispana was incorporated in 1993 to serve the needs of Expat buyers in the Southern Costas in Spain. Many investors took out mortgages with Halifax as they were a trusted UK High Street lender giving them confidence in their overseas property purchase and finance they obtained.

Unfortunately, many borrowers now find that their loans are no longer with Halifax.
See the below timeline:

EU Property Solutions experience with Banco Sabadell to date has been positive. We met with the Bank in their Seville office in April 2019 and the Bank confirmed there are many Non-Performing Loans. They also discussed they are increasing their collection methods in the United Kingdom and Ireland.

EU Property Solutions experience with Banco Sabadell to date has been positive. We met with the Bank in their Seville office in April 2019 and the Bank confirmed there are many Non-Performing Loans. They also discussed they are increasing their collection methods in the United Kingdom and Ireland.

Many investors look to place blame with the Bank, they did not write these mortgages and instead are working with borrowers to end their Spanish Property issues. Their proactive methods and legal approach allow overseas borrowers the opportunity to dispose of their property with minimal costs and issue providing it is done through legal avenues.

We work with all core Spanish lenders and British lenders who still operate there.

A tough question but a common theme our team experience here at EU Property Solutions. 

Demographically speaking, a majority of our clients are those of retirement age who purchased property during the boom period in Europe pre-2008. There have been multiple occasions where we have received enquires from people who have advised their mortgage term will last long into their 80’s.

Firstly, this is evidence of “loose-lending” and pre-2008 many lenders did NOT follow proper protocol. Since then many Central Banks’ have become tighter and increased regulation on lending across Europe. Ask the question of how a Bank deems someone of retirement age able to repay a capital repayment mortgage? Madness.

What is most alarming, is that some clients do not know how they can continue to pay the mortgage! Nor, the implications of not paying and if they did die – put simply debt does not disappear.

Should a borrower pass away the debt does not go with them. Instead, it will be put into the deceased’s estate and may have implications in terms of potential inheritance for children, etc. No one would wish to leave this burden on their children.

Accordingly, this is NOT a matter to be avoided, EU Property Solutions have solved troublesome mortgages of this type in Spain, Cyprus, Portugal, France & further afield.