Mortgage and Repossession

The economic crisis, and recently the impact of COVID19, which has engulfed a large part of the world, is seriously affecting not only individuals but also companies, the self-employed and small businesses, with great impact on families.

Many UK clients who purchased a Spanish holiday home during the boom years in the property market now find themselves in a much less favourable financial position and consequently find making mortgage payments on their second home a strain on the family budget.

Our property lawyers have extensive experience in negotiating with Spanish mortgage lenders.

We can assist you with:

  • Re-negotiate the terms of an existing mortgage. Cancel mortgage contract and return property to lender (DACIÓN EN PAGO).
  • Arrange sale of property whilst ceasing mortgage payments.
  • Haltre possession proceedings.
  • Settle you mortgage when you purchase a property.

 

«DACIÓN EN PAGO» AND «QUITA» (Handing back the keys to the lender)

Dacion en Pago has become the best solution for those, who cannot cope with their monthly payments to banks (whether or not they are resident in Spanish territory), andare immersed in Foreclosure Procedures. These procedures use to have tragic outcomes as families are evicted of their properties and are forced, in some cases, to continue paying the outstanding capital after the auction of the mortgaged property.

Our professional specialty is to engage negotiation with banking entities and to give the house to the bank as a full payment of the outstanding capital of the mortgage, releasing the client from any liability and debt and ensuring their interests and benefits. This process is called Dacion en Pago (Dation in Payment).

However, there are cases where Dacion en Pago is not possible and we need to find another ways of solution. In those cases, we follow Quita process.

Sales with Quita are the best option for those who want to sell their properties but the market prices are bellower than their mortgage debts. This situation occurs very often since the last economic and financial crisis. The crackling down of house prices prevents the sale of mortgaged properties so that the Sale with Quita is the best way to get rid of the properties and cancel the mortgages without assuming a high cost and expense.

 

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