Walking away from Spanish property

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PiedPiper

Guest
Hi

Friend thinking of walking away from a spanish apartment. (100k) Several people in the complex mostly Irish have done so already over the last 4 or 5 years and there has been no pursuit of them to date.

Many of the apartments have no even been repossessed.

He can no longer carry it as he has lost his job and the spainish bank is not communicating or agreeing to proposals.
 
The forum to post this on is [broken link removed]. As far as I know the Spanish Banks have gone after UK residents who have walked away from their properties.

angela59
 
The question is if you walk away from a spanish mortgage what happens next?
 
cashier said:
Could you be a bit more specific? Can you friend not pay the mortgage or has he/she lost their job, Is the property in negative equity?
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PiedPiper said:
He can no longer carry it as he has lost his job and the spainish bank is not communicating or agreeing to proposals.
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Just wondered in a situation like this if a friend or family member could come on board, pick up a percentage of the mortgage payments and house share?
 
cashier said:
There are countless empty apartments in Spain, a lot of them built in places where there wasn't a need.
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To be honest, I would say it is worse. The properties were built for foreigners to buy. That market was never sustainable and is gone now. Locals will never live in these places.

To answer the OP's vague post....if a debtor defaults and walks away from the property, the bank that holds the security is entitled to seek repayment of the deficit of property value and amount borrowed against it. It does not really matter whether the propery and debtor are in different places. You could hardly expect them not to come looking for their money back just because the debtor lives elsewhere. Is that what you think?

They must have addresses and PPS numbers, passport details etc and could therefore initiate proceedings for repayment of the debt or call in the security given on the loans.
 
Cashier,

I'm afraid the Spanish situation is a lot worse than Ireland - there are approximately three million empty units, unemployment is 25% approx - they have only just started into austerity measures.

Piedpiper
In answer to the original poster if you post on the website I suggested - there are more people on there who are very savy about Spain but in my opinion from following the Spanish situation - your friend will not be able to walk away from his spanish property - I have read that the banks have followed people to the UK and don't be under illusion they will not. I know of someone who did not pay the urbanisation fees (maintenance fees) for several years for his property in Spain, the administrator has brought them to court in Ireland to claim back their fees plus interest. Sorry to be the bearer of bad news but your friend will have to address this issue and get a good solicitor in Spain to sort out - I don't think any of us can walk away from taking out a mortgage and not repay. Has he tried at all even to sell the property, at the moment he will be taking at least 30% hit - depending on which area he is in - I think even at this better do it now than 1 year down the line when things might be worse.
 
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