In recent months an increasing number of clients have contacted us after receiving a letter requesting a large sum of money in relation to a mortgage in Spain.
Why have I received a letter from a Spanish mortgage lender?
Many clients purchased a property in Spain with a mortgage from a Spanish bank.
In lots of circumstances, the mortgage payments became unaffordable and the mortgage fell into arrears.
In most situations, the mortgage lender will have repossessed the property. The process can take several years in Spain.
Once the property is repossessed it is often sold at auction. The sale prices can be lower than the outstanding mortgage amount.
Some banks are now pursuing foreign clients in their home countries for the amount outstanding.
Why have I received a demand now after so many years?
Most banks repossess as a last resort. The process can take a long time and also incurs not unsubstantial costs to the bank.
Banks such as Bankia and Banco Sabadell have appointed solicitors in the UK to pursue these debts.
It is far better to negotiate with the bank prior to the property being repossessed.
It is possible to negotiate to return the property to the bank (commonly known as a dación en pago) or agree a managed sale with the cooperation of the bank.
In many cases, the bank will agree settlement terms even with negative equity.
Never simply return the keys. Any agreement needs to be legally ratified and the ownership of the property transferred by signing in front of a notary in Spain.
I have received a Spanish mortgage lender letter, how can you help?
Gascón Bernabéu Abogados have helped many people in mortgage difficulties. It is never too late to ask for legal assistance.
The first step is to contact us to discuss your circumstances. We will review your situation and explain how we can help.
We offer confidential, no-obligation consultations.
In many cases, the bank has either little appetite to pursue through the courts in another country or cannot enforce in another country due to a technicality such as correct notification of proceedings.
In the main part, we are able to negotiate the best possible outcome.
Contact us today for your free consultation.