Spanish mortgage question

[partnership]

Not sure if this is the right forum so please move if not.
We have an apartment in Spain (long story we were living there for a while), we do not use it very often and I do not rent it out except to family and friends.
We currently owe about €88,000 on the mortgage, the apartment next door was repossessed and sold for €50,000, other apartments in the complex are up for about €60,000.

We are paying the mortgage and the community but are struggling to do so. I am not sure what to do, I assume even if it was sold we would owe the shortfall - I am not sure of Spanish law so would welcome any advise.

We are renting in Ireland, have a number of personal loans and would love to buy but can't see us doing so for the foreseeable future. We are just about making ends meet but have no capacity to meet the unexpected or indeed any further increases from the budget or decreases in wages.

 

[Macstuff]

Hi there,

Firstly, sorry to hear of your problems.

I have a Spanish mortgage too (with BBVA) and am pretty sure that you would be liable for any shortfall. Whether they'd convert that to a term loan I don’t know, it would really depend on the terms and conditions of your mortgage and what guarantees you offered for the loan. I am guessing that they will hesitate to let you out of your mortgage (which is secured debt) in order to allow you to sell and make up the balance with an unsecured personal loan. The fact that you are a foreigner and can easily cut ties with Spain will make them even less likely to do this. However, this is only an opinion.

I have found that the Spanish banks are as hard to get money out of over the last few years. In 2008 my bank withdrew a mortgage offer leaving me with a huge shortfall that I have had to make up through term loans here in Ireland. Over the past three years I have tried to get them to offer me a mortgage but they have refused. Me being a foreigner based in Ireland has not helped my case.

Have you thought about posting in the Money Makeover section - maybe if you outline your income and outgoings there, you will be able to find some areas where you can make cutbacks and free up some money?

 

[SlurrySlump]

If your house is in a lettable area then I think that you have to go down this route. You can advertise on www.ownersdirect.co.uk or www.holiday-rentals.co.uk or register with the local tourist office website. You will need to have someone local to change towels and linen plus cleaning. If you offer the property at a lower price then you will have good interest. It seems pointless having a property sitting empty when it could be earning it's keep.