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20 Oct 2012 4:22 PM by emat00611 Star rating. 9 posts Send private message

Can anybody advise me on the following I purchased a property in Spain back in 2006 for 215.000 euros and obtained a mortgage through uci for 165.000 euros I am now in a position were I am now not able to keep up with repayments and have asked for an up to date mortgage statement I have now received this and was shocked to find I now owe 167.000 euros I have instructed a Spanish lawyer in Marbella to help me with this matter but really unsure of the advise being given. I am in contact with uci and they are now saying they have found a buyer for the property and have an offer of 100.000euros what they would like me to accept. They are saying if I accept this offer it will leave me a balance of about 80.000 euros to pay as they have added on various charges ie agents charges of 4per cent etc. I live in the uk and have no assets now as I sank all my savings into the Spanish property. I have been told that various Spanish banks can not come to the uk to chase the debt is uci one of those? Can anybody help me with some advise.



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20 Oct 2012 5:35 PM by gaula Star rating in marbella and the u.k. 64 posts Send private message

 UCI are a finance house , I belive as part of Santander group but I may be wrong on that point . Get legal advice as you could ask for a dacion - ie you surrender the house and they agree not to chase you in the u.k .

Yes all Spanish banks and finance companies can chase in the u.k

 





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20 Oct 2012 5:44 PM by ojosazul88 Star rating. 171 posts Send private message

 And people wonder why these criminal bank actions led Spain down the path facing the abyss!

You purchased a house for 215,000 euros which was falsely valued and then they lent you 165000 euros on this wildly overpriced valuation!! Of course you thought by pumping in your nice deposit you were paying off the house, that was the deceit, the scam that hid the truth until the lid blew on the pressure cooker after the credit crisis of 2008.The reality was your house was worth around 75000 euros in 2006 or less.  How can you owe more on the mortgage now after paying it off for 5 years? Interest only?

You are one of many that didnt just fall victim to a rising property bubble that burst but systematic manipulation of property valuations by the banks and their cronies between 2000-2007 .





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21 Oct 2012 9:12 AM by emat00611 Star rating. 9 posts Send private message

Hi the mortgage was taken on as the first year was interest only the rest repayment! We have already instructed my Spanish lawyers and sent them the mortgage statements but the seem to think all is in order but I am not sure they are working in our best interest. The bank would like us to accept the offer of 100.000 euros then that will leave us with an 80.000 loan and nothing to show for it.can anybody point us in the right direction with this?



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21 Oct 2012 9:33 AM by competa Star rating in Scotland. 92 posts Send private message

I would take legal advice from an international lawyer based in the UK but operating in Spain.  If you have no assets in the UK, they have nothing to gain by chasing you.  It seems ridiculous that you can still owe so much money having paid instalments for 5 years.





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22 Oct 2012 4:59 PM by clarice Star rating. 35 posts Send private message

 Careful of giving advice " if you have no assets in the u.k  etc" this is unfair and could lead to a person forced into bankruptcy .

 

Best method is the datcion .Lawyers can and will advise on this ...ask them 





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25 Nov 2012 10:46 PM by Smiley Star rating in San Pedro de Alcanta.... 2502 posts Send private message

Smiley´s avatar

I dont think Dacion en Pago is enforceable and is at the banks discretion as to whether to accept it or not - change in legislation in 2010 I think - when it became apparent the banks were going to be facing wholesale repos. As Competa says - take advice from a good international lawyer but I think UCI are within their rights to pursue any assets you have in the UK. Not sure who owns them these days (they were part of BNP Parisbas when you took the mortgage). As to how the mortgage has increased - we never used them as a lender as they were unable to give us a clear explanation as to how they calculated their interest charges but it was something similar to Annual Rest (used to be the way ALL UK mortgages were charged prior to 2000) ..... a complicated formula and if you speak to someone that had a UK repayment mortgage prior to that date they may recall the expression "the problem with a repayment mortgage is that you pay nothing off in the first 5 years". Every time the Business Development people came to see us he was unable to explain why an interest charge of lets say 3.5% actually equated to about 7% (approx figs 2003/4 is a long time ago) as we asked them to provide a 5 year projection based on 100,000 Euros. I recall 2 of them looking at me like a rabbit caught in the headlights when I quizzed them ..... and then swiftly moving on to the holidays and incentives they would offer us if we introduced certain levels of business ...... they were the estate agents friend!!!



_______________________

Smiley - patrick@marbellamortgages.com  www.marbellamortgages.com   www.comparetravelcash.co.uk




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26 Nov 2012 8:27 AM by johnzx Star rating in Spain. 5242 posts Send private message

 

I really have difficulty understanding the reasoning of some posters.
 
If I am interested in buying something, anything, I look around and make comparisons with other similar things, and get an idea if the price I am being asked if OK. I may ask a professional or not. Whichever¡ way, I make the decision.
 
If subsequently market prices fall, I cannot go and ask for my money back. Example If I buy a car for 25,000 and then the list prices is reduced for future purchases to say 20,000. That is my problem not the car dealers’.
The same with a property.  It was I who decided that the price was OK and that I could afford it. No one pushed my arm up my back.
 
At the height of the property market, the price being asked was  the going rate. Over the years before,  when prices increased,  I made a profit. I did not say I had paid too little. I had assessed the market well.
 
Prices have fallen due to market forces, mainly that considerably less people want to buy now than did before.
 How can I blame the bank , who in good faith gave me a mortgage based on the value of the property at the time, the information that I provided on my ability to repay.    If I cannot afford to pay now its my fault, I got it wrong.
 
I have sympathy for those who are in difficulties and I was pleased for those who in belter times made good profits. But that is the way life is.
 
If I borrowed a 100,000 from you, would you think it OK if I later said I cannot repay it and walked away ?

 

 

If a bailout is required it is not for the banks to the hit but us,  through the government using our tax money.   As I said in anther post,  it could be levied as a Charity Tax, as that is what it would be.


This message was last edited by johnzx on 26/11/2012.



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26 Nov 2012 8:46 AM by tamaraessex Star rating in Colmenar, Malaga. 508 posts Send private message

tamaraessex´s avatar
Like John, I have sympathy that things have not gone well for you Emat. However there is one important line in your post, where you say "I live in the UK". So you have somewhere to live - that is a huge relief. You are undoubtedly aware that house prices are falling in most countries, but probably more in Spain because of over-supply. Hundreds of thousands of families in Spain are losing their ONLY home because they cannot afford their rent or mortgage. As l said, l do have sympathy that your holiday home has turned out to be a luxury you can no longer afford, and that your investment in it did not pay off. It's sad, but it happens. People are having to either sell at a massive loss, or struggle on continuing to make their contractual payments in the hope that their own circumstances will get better and they will eventually reach the stage in the mortgage contract when the amount owed starts reducing faster and faster. Apart from the Dacion de Pago, which as l understand is at the bank's discretion, those are the only options that l know of - sell at a loss, or continue to pay back the loan you chose to take out.


_______________________

 Blog about settling into a village house in the Axarquía. http://www.eyeonspain.com/blogs/tamara.aspx




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