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houses with bank mortgages

ASL Member Founding Member Bericht #13098 Reacties gesloten

I have a friend in a property with a bank mortgage which is presently in negative equity. Can anyone give advice. We've been told that she can hand back the keys and the bank has to write off any debt when the house is sold. This is a very sad state of affairs not caused by anything she did. Any advice welcome. Is there, as in UK, a scheme where a first consultation with a lawyer is free?. This lady is 66 and bought her first home at 18. When she gets back to UK she will for the first time in her life have to go into rented accomodation.

Reacties

I would advise to talk with the bank
your friend has the mortgage with.

And get them to go through your mortgage policy with you to see there is no penalty cost against you if you hand in your keys

Best of luck

ASL Member Founding Member 2012-03-29

There is an answer but it is one that not many people accept or like. It is to let the property here in Spain on Long Term. Then later when market picks up you can then sell at a realistic price. www.daydreamvillas.eu But you would need to sit on property and be patient.

ASL Member Founding Member 2012-03-30

Simple, get some GOOD legal advice, not your local bar-room type expert.
A debt is a debt, and the debt will follow you.
This may be worth a look though
http://www.eyeonspain.com/forums/posts-long-12754.aspx

ASL Member Founding Member 2012-03-30

thanks for all your replies. I asked as I was told yesterday that under a new law the bank couldn't pursue to recover any deficit when the house was sold. It didn't sound right and her solicitor hadn't mentioned it. It didn't make sense so it's probably wrong

ASL Member Founding Member 2012-03-30

I once owned a property in Florida, it got repossessed and the back was not able to come to me for the money as I was U.K citizen I do not know if Spain is the same but its worth finding out.

ASL Member Founding Member 2012-03-30