Mortgage Arrears Mounting Up: How can I deal with it?
Tuesday, November 29, 2016 @ 7:32 PM
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
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