dacion en pago

Hi,

Has anyone experienced this ? If so, can you offer any advice ?

Following 5 months of unemployment and no sign of a job paying the mortgage has become a huge burden. Cambank will not help and have refused our  suggestion that we switch to interest only which we could afford.  I understand I have a right to ask the bank to consider this if I can not pay the mortgage . Is this correct ?

Any advice would be appreciated.

Most banks are keen to help if you wish to continue payments and terms can be agreed in person at the bank.Dacion en Pago is only an option if your mortgage payments are up to date.Banks are not obliged to offer you interest only but there are other options they may offer you to bring down the monthly repayments.

Hi

We have been through the dacion de pago system.

We were returnuing to the uk after 10 years there,knowing that we were unable to continue with life here and a mortgage there,

We e/mailed our local branch and ccd the head office of our intentions.

It wasnt untill the third monthly payment had not been payed did they respond to our request.

we then recieved the paperwork from thier london legal branch,to take to a Public notary here and get processed

we miss spain,but have started here again,without the worry of being pursued for outstanding debt.

Eliza

It appears that the banks will take no action untill three payments have been missed,and your account had to been up to date

before you defaulted

Thanks for your comments PM7 and eliza.

The bank have suggested we take out another mortgage to pay the existing one but this is not practical and would only be of benefit to them.

We have always been able to keep our payments up to date but the money has finally run out. I think we will have to miss the next payment and see what happens.The worry of it all is affecting my health and I would rather hand the property back and take a loss than continue as we are.

Good luck with your new life in the UK Eliza !

 http://www.eyeonspain.com/blogs/costaluz/1094/legal-tip-27-dation-in-payment-a-right.aspx

Dación en pago ( dation in payment) is not something that you  will luckily and graciously obtain by the "wonderful mercy of the Bank"  BUT A RIGHT, out of provisions 1175 et seq of our Civil Code:

web@costaluzlawyers.es

www.costaluzlawyers.es

We have  been trying to hand the keys back to the bank for nearly a year now with no success under the Dracion de Pago.

The bank told us that they do not accept this and said we should try to sell or rent the property.

We also asked a Spanish solicitor to negociate with the bank on our behalf and he was also told it was not possible to hand the keys back.

We are on an interest only mortgage and the bank did reduce our interest rate for 6 months, which will be up in December.  We will then be back in the same situation where we find it very difficult to meet the payments and can see no way of ever clearing the mortgage as we are both in our 60's.

We have never had any other debt and have always paid on time and find ourselves in a very stressful situation.

I am aware that we put ourselves in this position, (through bad financial advice when retired from my job) but we did not look at the longer term situation and would advise anyone, especially if you are in the older age group to be very careful when considering anything as big as this unless you know you can pay off the debt.

In our opinion, if you cannot keep paying the mortgage instalments you just can officially give the house back to the bank as payment of your debt and stop paying the mortgage instalments. It is true that they can start a repossession procedure, to which you can respond with the dacion offering and a proposal of agreement for the closement of the debt.