Can't pay mortgage

What is the situation regarding non payments of mortgages in Spain? I was one of the many people mis sold in the Almeria region and now have a large mortgage that I'm struggling to pay. It is due for renewal in the next 4/5 months, so was wondering whether to over borrow to pay the monthly payments or just go bankrupt rather than get into more debt... There appears to be more and more properties going on the market, so I can't see how the rental or resale situation is ever going to improve?

Any advice would be welcome...

Renting is a good option now.

the non payments of mortgage  installments results in the public auctioning of your house by the bank.

Hi,

Unfortunately, there appears to be so much competition in the Almeria area that finding a tenant is almost impossible... I really don't know what to do for the best - all I know is that I cannot continue to pay mortgage payments in excess of €500 per month with no one in the property...

Thanks anyway.

Paul

Hi Paul, I am aware that now if your home gets repossed here in Spain it can also blacken your name in the UK. Try renting it out, there are some good websites out there and agencies that should be able to help, if not try and sell for what you paid, its better to make no profit that to get a bad name.

All the best.

Hi Paul,

Not sure what you mean by 'it is due for renewal in the next 4/5 months' but have you approached your lender to see if you can re negotiate terms? I know the last thing lenders want to do is reposses the property so I strongly recommend you speak with them to see if they can help!

Regards

Sharon

www.themortgageservicegroup.com

Hi Paul - I can empathise with the position you are in. 

I bought my property on the basis that the rental would cover the mortgage - maybe even make me a bit extra too - and the rental situation has been dire.  

I have my villa with a rental company, who only got me one week in a year, so am about to change that when their contract runs out in December.  Ask about your development to see if there are any local companies who are managing to obtain clients for their properties and go with one of them.  I have managed to obtain a few weeks rental through friends and family - you need to tell everyone you know about your wonderful property!  I have also listed on as many free sites as possible (including EOS) and pay for one - Holiday Rentals.  They haven't got me any bookings so far but my ad is getting a few enquiries which may lead to rentals.  You could also set your prices below any competition - a low return is better than nothing at all.

I am also in the position where I can't sell as there are resales in the development well below what I paid.  I'm currently living on credit cards (o% ones thankfully) and my only choice is to move out earlier than I had intended - which I'm actually not too upset about!

Hope you find a resolution soon.

Thanks to all for your advice so far... I think trying to get my own holiday rentals is the only obvious way forward at the moment... There are about 800 apartments that have just been released in Vera, so long term rentals look nigh on impossible to get....

I can re mortgage early next year, so what I may do is speak to a few banks and perhaps borrow a bit more to help get pay perhaps a years worth, with a view to addressign the issue at a later date... That is on the basis that Spanish properties will eventually start to rise in value once again...

Can anyone reccomend any good mortgage advisors?

You could PM Smiley on this forum or there is a company called Mortgage4Spain that advertises on here.

www.Mortgage4Spain.com - we dealt with Stefan Onsmark & I can honestly say that we cannot fault him in any way. He is extremely efficient & keeps you fully informed of what is happening.

Hopefully, they may be able to help you.

Noreen

Hi Paul

I hope things work out for you. We are seeing a rise in cases from people in situations similar to yourself. Some people simply sell the property quickly at a discount and walk away. We have helped people achieve a quick sale.

I would suggest talking to a good broker to get you a good deal to continue ownership of theproperty. After all, things cant stay like this forever.

Paul,

In order to remortgage with any Spanish Lender a new Lender will require a Mortgage Statement showing your up to date payments. If there are any missed payments you will not be allowed to remortgage. Some Banks ask for the last three months payments some upto 12 months.

As long as you maintain your current payments options open to you are to change your mortgage to interest only payments, especially if this is an invetsments/rental property  and to check for the best interests rates available to you. ** EDITED ** Commercial post