If you cannot afford to pay your mortgage in Spain Gascón Bernabéu Abogados can help. Gascón Bernabéu Abogados have assisted hundreds of clients escape from mortgage problems in Spain. Our experienced team of English speaking solicitors can help you in all manner of circumstances, such as: Obviously every situation is different and there can be more than one solution for every circumstance. A dación en pago or mortgage settlement occurs when an agreement is reached with the mortgage lender for the property to be returned and the outstanding mortgage cancelled. In this case, the property will become the ownership of the bank. In order to agree to a mortgage settlement, a formal application must be submitted to the bank. The specific circumstances will be outlined and arguments made as to why a settlement should be agreed. The negotiations can potentially include the bank absorbing any property related debts, such as council tax or management fees. The bank will require the keys in order to obtain an up to date valuation of the property and to verify that the property in unoccupied. The bank will not complete the settlement is the property is currently rented out or has squatters. In both instances the occupiers will have to have left the property for agreement to be reached. Once all matters are agreed, the completion of the mortgage settlement takes place in front of a notary in the same manner as the original purchase. The mortgage will be cancelled with no further financial commitment. The majority of GB Abogados´ clients do not travel to Spain at any point in the process. A Power of Attorney is drafted to avoid the need to visit Spain.
If you are in a position where the mortgage amount exceeds the current property value, you are in negative equity. This means that you would have to pay the difference between the sale price and the outstanding mortgage. However, there is often a solution which is known as a compraventa con quita. This is a managed property sale in cooperation with the mortgage lender. In a case of negative equity, it is possible to negotiate with the bank to achieve a sale and cancel the outstanding mortgage. You might ask why the bank would accept such a situation. The bank would evaluate the situation as a whole; the financial position of the clients, the value of the property, the property market in the area and the financial losses that would be incurred. An advantage in agreeing this type of sale for the bank is that they would not be liable to pay taxes, so the cost could be lower than agreeing a mortgage settlement. The sale is also signed at a notary in Spain and the mortgage is cancelled. GB Abogados offer free no obligation consultations. One of our experienced solicitors will review your situation and provide advice on your options. If you have a mortgage in Spain and are struggling to meet the monthly payments, please contact us today. GB Abogados have many years experience in helping international clients with mortgage difficulties in Spain. Mortgage settlements – dación en pago Spanish mortgage lender letter Power of Attorney to avoid having to travel to Spain
Dación en pago
Sale in case of negative equity
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