Legal tip 816. Dation and balance II
22 August 2012 @ 14:11
When making calculations for a dation to work out with much guarantees, it is not the MARKET VALUE what you need to consider but:
1.- The outstanding mortgage debt you have got with the Bank. ( it is the price the Bank is actually paying for the house when a dation is accepted)
2.- 60% of a value ( AUCTION VALUE) which is contained in your mortgage deed, and which includes principal+interests+legal costs. This is the value that Law establishes as minimum for the Banks to value repossessed houses at.
So, if both figures are near, or better said, debt is not much higher than that 60%, the try is worth pursuing and the result with be a balanced and fair situation for Bank and you.
We also talked about dations in our yesterday´s post