Hello everyone,

We had a look at our finances this week...and were scared ...

The trouble is we can not afford to pay our mortgage in Spain anymore....for the last few months we have been paying a third of it as we managed to get trustworthy people in (who were neighbours).

We just can't afford it anymore...!!

Our tenants moved in saying to us that they were happy to have little notice if we sold or got tenants that could pay the going rate ...so have no worries about advising them of our circumstances.

However, what happens...do we just not pay and the bank repossess???? Not sure on the legal implications....

Also we have friends in the area that are renting, we have said to them if they want to take over the mortgage ...they are more than welcome...if they pay to change over the deeds etc etc ...obviously the banks got to allow it aswell!

Any advice would be great as we can only meet the mortgage this month.

Really sorry to hear that. I can only go on what i have been told which is not to just default. If you do that it will harm your credit rating. I think that if you go to the bank and fill in all the paper work effectivley signing the house over to the bank is the best way to go. Very kind of you to give the house away to anyone who will take over the mortgage.

There is some info here
http://www.spanishpropertyinsight.com/buff/?p=44
http://britishexpats.com/forum/showthread.php?t=537841

Hiya Mich,

Really sorry to hear about your worries

I'm afraid I haven't got any brilliant ideas, but could you not try looking for new tenants that can afford the going rate for the rent?
I know that won't be easy when you're not actually in the country, but it's worth trying.

Obviously your current tenants were aware that things might change for them at short notice - and presumably they don't want to / are not in a position to pay any more rent??

I'm a bit concerned about you suggesting that the friends who are renting in the area could take over your mortgage, and could have their names put on your deeds???
Have I understood that right?

That would mean you were giving your house away!!!
Perhaps I've misunderstood you?

I really hope that you can get something organised soon.
You've had enough difficult times; it's about time you had a lucky break.

I'm sure that right now you are not feeling in the best of spirits - but maybe when you feel like it, you could update your leaving Spain thread?
I was thinking about you only recently, and wondering how you were getting on; and I'm sure I'm not alone.

I haven't been on here for ages, but it's brightened my day to see that you are still about

Please take very good care, and I really hope that you can find a way to make this work for you without losing your house.

Love Sam x

Oh Mich this terrible I can't help but wanted to add to this to let you know I'm thinking of you. I do hope something can be resolved. It is a good suggestion of Cbandy to speak to the bank. I hope they can come up with a solution. Have you tried the local townhall? Maybe they could find someone to rent it from you. Just a thought. You can't just give your house away

Yes, talk to your bank first.

The banks in Spain have been told not to repossess unless absolutely necessary as they don't want a load of unsaleable properties on their hands.

The banks now have to allow you to extend the term of your mortgage without any charges or legal fees - this was introduced earlier this year.

Bit isn't that just for residents on their principal home?

Yes, but who has said that this in not the case here?

On her other thread, Mrs Eddie says that she and her family have moved back to the UK, her husband has a job there and their house in Spain is rented out.

The bank will in due course repossess the house then sell it at a great loss however due to EU legislation agreed with the UK government,They will then pursue you for any outstanding monies and can in fact put a charge over any UK property you have until the monies are paid back,So anyone running back to the UK thinking that throwing the keys though the banks letter box is the answer think again.I will also remind you of the information you gave to the Spanish authorities when you obtained an NIE number all those little bits of UK info like UK address passport details etc,Making tracing easy.As stated above the bank will do all it can to help, Freeze interest, Extend the length of the mortgage etc so really, I know its very sad but there are solutions. Speak with your legal adviser.

dont do anything hasty...speak to the bank and some agents first as most that came to look at our house said there are lots more people looking to rent at the mo rather than buying - also our neighbour who rents her house had a good response from costa blance news, female focus and also the inland trader so perhaps you could put some ads in there

plus there are loads of free site you can advertise it on for rent

sending you big BIG hugs, hang in there xxx

Hi all....thank you ever so much for all your advice.....me and Ed have to sit down and work out what's going to be the next step.

We will speak to our bank and see what they can do ...then take it from there. Also we will speak to our lawyer.....

Ummmm.....just want to reply to Posnbucks comment :

" So anyone running back to the UK thinking that throwing the keys though the banks letter box is the answer think again."

Not sure whether this was a generalisation or refering to me - but we didn't run away ....and definitely didn't intend to hand the house back to the bank. I was going to work full time in order for us to pay both rent in UK and mortgage in Spain but childcare costs are too expensive!!

Just wanted to clear that up .....

I don't think poshnbucks was having a dig - more just generalising


I really feel for you

dh & I were only saying the other day that probably the only really good decision we've made since coming here was not buying - so we really could just walk away

Think I just am a bit sensitive....I feel quite a fool for just being in this situation.

Fairplay to you not buying.....we stupidly thought as we believed it would be a permanent thing, we wanted stability - how niave was that?!!!!!!

Oh well you live and learn ......

xxxx

it's hardly all your fault is it?

these things are happening all over the place to all sorts of people


about 15 years ago my brother and his wife walked out of their flat & posted the keys through the building society door - they were in more than 50% negative equity

they were emigrating to Australia

unfortunately they left some of my furniture (lent to them by my parents who were supposed to be storing it in their garage for a couple of months )- in the flat:curse: