Dacion: any advice?

Hi,

We are looking for some advice and would appreciate any comments. As many people have found themselves with the current financial difficulties we are struggling with our spanish mortgage. We are going through the dacion process but are concerned that our latest communication from the bank indicates that our property has more than halved in value within the last 3 years resulting in a shortfall of over 100 000 euros. We do want to resolve this situation and never expected to find ourselves in such a position. Is there anything we can do?

Another problem we have is that we bought our property with a partner who has now ceased all communications and will take no repsonsibility for the property or outstanding debt despite his name being on all contracts and the mortgage. Do we have to pay all the debt or can it be organised that it is split accordinlgy between ourselves and him?

Any advice will be gratefully accepted and many thanks for your time.

I suppose you have already made a firm offer to the Bank for the dacion, through certified mean so you can use it as evidence in Court?

Regarding the co-debtor, I would need to know how the mortgage debt was assumed ( jointly and severally?). This needs to be mentioned in the mortgage debt.

Best,

Maria

Hi Maria,

Many thanks for your reply. The dacion has been asked for officially through a court process and we have been told we cannot contest the valuation or the way the outstanding amount is paid. They indicated that the valuation has been completed by independent surveyors and that this is neutral.

When we purchased the property it was based on all 3 having their name on the mortgage, bank account and we had to get NEI numbers. We have been informed that in Spain this makes no diference and that only one person is named and that as my husband is the first name on the mortgage he has sole responsibility. Is this correct?

Many thanks for your help.

 Regarding the valuation: there are arguments to deffend that the valuation is what the Bank did for lending in the past.

Responsability of co-debtor can be jointly or jointly and severally, I would need to see the deed for giving to you a definitive answer.

Best,

Maria

Hi Maria,

Just an update on the situation. We have pursued the dacion and offered half of the outstanding debt. (55 000) The manager of the bank indicated that this was a fair proposal and went to his head office. They have declined the offer as they said it was only 85% and we are now at a loss about what to do. Can they bank seize our assets in the UK? and what could be the future implications for us if repossession takes place. Would  the fact that we have applied for the dacion and offered to pay half of the amount stand us in good stead if the case went to court?

Any advice is gratefully received.

 Dear Oasis:

Dation and half of the outstanding debt  55.000 € being paid?

What was the valuation of the property when you obtained your mortgage?

Best,

Maria

Hi Maria,

I have just been re-reading your posts and we have applied for the dacion va the bank and what has followed has been the ongoing discussions. The property was valued at 465,000 and we borrowed 375 000 and now owe 368 000. The bank valued the property now at 255 000 and we have offered to pay half of the short fall because of the partnership we have on the property. Our partner has relinquished all responsibility for it.

We do appreciate your help on this matter.

Many thanks.