Dacion en Pago Urgent Query!

Hi there

We recently completed the title subject in March and have still been having letters from the mortgage company which are advising us we are over drawn etc etc.  We have had confirmation via e mail in May from the bank manager that we were in peace with them!

However following numerous letters since i have  emailed them a letter asking for them to confirm the current situation as we are very concerned. The response today was as follows:-

As you can understand these letters are not coming from the Branch in Campoamor, they're automatically generated in Madrid. You left the power of attorney and the keys of the property, but it does not mean that the property is sold and the mortgage is already cancelled. I understand you're concerned for the letter you receive but it takes time to get out from this situation. We're not calling or sending you lawyers to require payments, because we accepted to try to sell it before it went repossessed, you know how is the economic situation all around Europe, it's not easy to find buyers, you have to be patient. And always bear in mind that the decision to buy the property and sign the mortgage has been taken by yourself, you have to be ready to accept the consequences.

I thought a dacion en pago cut you free of the mortgage and any debt??

Can anybody shed some more light on my sitaution and/or provide me with any advice??

Many Thanks in advance.

 Hi there,

I know someone who did this but signed it over to the bank at the notary. The bank wer saing the same things as you and that they could come afterwards if the proeprty did not sell, etc etc etc.

However, the notario told her not to worry as once its signed over its their problem.

You need to check the title is now in their name and not still in yours - Maria from this site can confirm this.

Hi There

Thanks for your reply. I am really worried now as somebody has sugguested we may have only signed a Power of Atterny to try and sell the property at a distressed sale. If not it will be repossesed by them!! Even though we wrote requesting a dacion en pago and the bank accepted us. It took three visits to spain and had to sign in front of the Notary??

Is it possible they may have miss-led us here??

Maria: are you able to assist me here in any way?

Many Thanks

 Im not sure of the actual process, so dont get too panicked yet. If you sogned a POA, this MAY be enough anyway! Check with a lawyer and you should have a copy of what you signed at Notary?

Hi Pazaz, I'm bumping this up for you as I know you're desperate to have advice. I see you've posted same post in two other boards to spread it far & wide but if all those members who are just as concerned about their problems did the same we'd never wade through the posts.It's rather counter productive. I'm sure Maria will come soon. Just try to be patient a while longer. We fully understand you're worried sick. Sorry I can't help.

Pazaz:

I would certainly need to see the deed/contract you signed with the Bank for the dacion en pago.  Your position certainly depends mainly on this. Initially the ideal deal is to have a clause in the agreenment ( deed or contract) by which the Bank/lender refuses to further requests in the future regarding that mortgage.

If the valuation of the property by the Bank do not cover the whole value of the remaining debt, you  have got rights to your own valuation and to challenge that of the Bank ( for a full coverage of your debt, with your own valuation at hand) in Courts.

In many occassiona as Banks/lenders do not want to accept your RIGHT to dacion en pago, they show a very low valuation, of course made by a surveyor of THEIR election.

The right to give the house to the lender as payment of your debt is a clear right in our Civil Code, so... so not let Banks/lenders to impose anything on you, come on Banks!

Maria