Hi, I have heard that a relatively new law has come into force, that if a home is repossessed by the bank and the mortgage outstanding is more than the value of the property, the bank can only take 60% of the value?? I am a bit confused about it, Maria de Castro touched upon it on her podcast about banks pursuing property in UK or Spain if someone´s house is repossessed, but I could not quite get the jist? Can anyone help?
When i applied for my mortgage in 2006, my one bed flat was valued at 185,000 by two banks, one of which i have a mortgage with, but i would not expect it to fetch more than about 90,000 in the current market, and i still owe the bank 130.000.
Thanks,