Recent mortgage settlements – dación en pago

GB Abogados continue to represent clients who have difficulty paying their mortgage in relation to their property in Spain.

Every situation is different; it may be that your personal financial circumstances have worsened since you took out the mortgage, or you may have been made redundant.

For many clients the shift in exchange rates has made the monthly mortgage payment much more expensive.

Whatever your circumstance, it is likely that we can help.

These are real examples of some recent cases that we have completed on behalf of our clients.

Example 1

  • Property location: Corvera, Murcia
  • Bank: Banco Sabadell
  • Initial Purchase Price: €242,000
  • Mortgage outstanding: €107,000
  • Current property value: €62,000
  • Outcome: The bank agreed to the dación en pago (mortgage settlement).  The ownership of the property was returned to the bank and the mortgage cancelled in full.  The bank agreed not to pursue the client for the large shortfall. The client was up to date with utilities and council tax, which helped the negotiations.

Valdemossa, Mallorca

Example 2

  • Property location: Orihuela Costa
  • Bank: Bankia
  • Initial Purchase Price: €175,800
  • Mortgage outstanding: €82,700
  • Current property value: €62,000
  • Outcome: The bank agreed to retain the property and cancel the mortgage.

Example 3

  • Property location: Torrevieja
  • Bank: Bankia
  • Initial Purchase Price: €109,000
  • Mortgage outstanding: €59,000
  • Current property value: €36,000
  • Outcome: The bank agreed to accept the property and cancel the outstanding mortgage. The bank even absorbed a debt to the community which the client had not been able to pay. The client was up to date with the utilities.

Example 4

  • Property location: Aspe, Alicante
  • Bank: Banco Sabadell
  • Initial Purchase Price: €189,000
  • Mortgage outstanding: €104,500
  • Current property value: €76,000
  • Outcome: The client was up to date with all payments. The bank agreed to accept the property and cancel the mortgage.

Example 5

  • Property location: Estepona, Málaga
  • Bank: Caixa Bank
  • Initial Purchase Price: €145,000
  • Mortgage outstanding: €111,000
  • Current property value:  €100,000
  • Outcome: Negotiated a settlement with the bank. The property was returned and the mortgage cancelled. The client had to clear small debts with council tax and the community.

If you have a mortgage in Spain and wish to discuss your situation and your options, please don´t hesitate to contact us.

We offer a no-obligation consultation.

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