Done or want a Dacion De Pago or In Negative Equity? Tell us your story

I read of people who bought a house in spain and have a mortgage of 460k euors ect with a house now worth 400k or substantially less.

What i dont understand is what was  going through your mind when you were signing up for half a million euros debt with the bank on a second home?

Lots of the threads are about people coming to the end of their interest free period and now they cant afford the mortgage.

But the 3 or 5 years of interest free period kept the repayments low for a while and then inflates them way above what you would pay if you have paid the full amount.
Its something people shouldnt never do because it makes no financial sense.

Obviously its easy for us to look from the outside and be horrified that someone would even consider things like these.

But how?

How exactly did you get into this postion?

Why did you go for the interest free for 5 years knowing at the end of the time your payments would triple?

What exaclty motivated you to come on an inspection trip and drop half a million on a property?

I am uber curious.

Dear Mungry,

We could all sit there like yourself in the current climate and ask that question, as it seems like a no brainer now, however going back 10 years when we first handed over our deposit it was a different story and things in Spain looked very good as did most places, Apartments were being snapped up and valuations were still rising even a few years after we had signed on an off plan development. If they had continued in the same direct or had the credit crunch never happened you obviously would have the answer to your question, Its easy to say "this was never going to happen" but it had done for many years before and very few knew exactly when that bubble was going to burst,  fewer still could have forcast the extent it has reached now.

You may  well be a financial wizard and could envisage what has now happened across the world and if you are then well done!! I just dont know, but I know of many people more knowledgeable than myself who have also been victims of the financial mess the world is in at the moment so I wouldnt be to quick to judge.

I am sure everyone has a different reason and circumstances why they invested what they did, which is the case in any type of investment, some are successful some are not. Although we didnt invest quite as much as the 460k you mention (I wont bore you with our story) but we have just been successful handing our keys back and walking away debt free with the help of Maria De Castro and her team at Costa Luz lawyers, and I am guessing (looking at the current market value) that we were approx 80-90,000 euros in negative equity possibly more, so there is hope for people starting down that line.