Cam Bank mortgage.... help

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viking62
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Cam Bank mortgage.... help

Postby viking62 » Thu Sep 03, 2009 1:20 pm

I have a mortgage taken out with Cambank just over a year ago. I have a house near Granada and have spent a total equivalent 23,000 euros having new windows, two new bathrooms a terrace built etc etc and sadly i cant afford to pay the mortgage anymore for various reasons. I know i would not sell the house quickly as it has been with an agent for a while now and the only option for me is to walk away from the mortgage...i dont want to do this due to the fact its now looking good after all the work and money ive spent on it i bought the house for 70,000 euros 100% mortgage from Cambank and told i could sell it for 99,000 which i think is too high in this climate However what would happen if i did walk away from it....I am a little scared...im prepared to loose the house and never ever attempt to buy my dream home in spain again...im gutted.....Can I do this....just walk away....what would happen??

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Re: Cam Bank mortgage.... help

Postby Jool » Thu Sep 03, 2009 3:44 pm

You would be pursued for the costs of the bank re-possessing it plus any additional fees and they will pursue you in the UK now, no matter what anyone else tells you.

You have the consumer right to ask for Dacion en pago which is where the bank accepts the property back as formal cancellation of your debt to them. This is done by both of you going to the Notary and signing the title deeds over to the bank, it saves the banks loads of money in fees for the process of re-possession and gives you a fresh start. This is by far the best solution for you and the most cost effective. You are only eligible for this if you are not in mortgage arrears.........and I would advise using a solicitor for it as they will take you a lot more seriously if you get a solicitor to liaise with them on your behalf.........

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DavidSearl
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Re: Cam Bank mortgage.... help

Postby DavidSearl » Thu Sep 03, 2009 6:34 pm

Viking62

Good work, Jool, quite right.

Just to amplify,

1. "Dación en pago" means that the bank accepts the property as total cancellation of your mortgage debt, leaving you free to go on about your other business.

2. Jool is right to point out that, if the bank has to go through the long process of repossession and then sale of the property at auction or otherwise, they will quite likely never recover the full amount of your debt. They can and do, as Jool notes, come after your assets in the UK or anywhere, or garnishee your salary if you work in Spain.

3. This is what will happen if you just stop paying and walk away. They can come after you.

4.. Jool's reccomendation to use a lawyer is a good idea. Keep in mind that, even if you are up to date in your mortgage payments, the bank is not required by law to accept your request for "Dación en pago". If you are not current in the payments, they will surely not accept it, but even if you are paying regularly, it is still the bank´s call and they can say no.

Good luck with it, David Searl
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hillybilly
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Re: Cam Bank mortgage.... help

Postby hillybilly » Thu Sep 03, 2009 6:40 pm

...and I believe that there has to be equity in the property. i.e. it is still worth more than the mortgage?

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Retro P
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Re: Cam Bank mortgage.... help

Postby Retro P » Fri Sep 04, 2009 10:40 am

hillybilly wrote:...and I believe that there has to be equity in the property. i.e. it is still worth more than the mortgage?
I was about to ask the same question, do you mean you have borrowed 70,000 and spent a further 23,000, if so then you only need to recoup the original 70,000 plus some interest maybe 7-10 percent of the original loan, you might just get away with it, bad luck though for putting so much effort into it then losing it, hope it works out for you.
Ah! the full english!!

Jool
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Re: Cam Bank mortgage.... help

Postby Jool » Fri Sep 04, 2009 1:28 pm

In theory the banks like there to be some equity left but where there was a high loan to value at the outset, with the drop in prices this is often not viable, thus in practice banks are being realistic and accepting properties back under dacion en pago if it can be shown there is no hope of avoiding re-possession. In this way the banks save themselves further cost.......if only they were more flexible beforehand there would be less of a need for this....it means also that the banks are now stockpiling property to sell at a profit or break even later.....

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DavidSearl
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Re: Cam Bank mortgage.... help

Postby DavidSearl » Tue Sep 08, 2009 12:56 pm

Jool, Retro P and Hillybilly,

Thanks for your posts, and you are all quite right. I had left out the no negative equity rule. As you point out, Jool, it is not a law or a regulation. It is one of the items always on the list for not being able to give your house back to the bank. But special times require special negotiations, as Jool points out.

thanks again, David Searl
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Re: Solbank Bank mortgage.... help

Postby muneca » Tue Feb 02, 2010 8:04 pm

We have been up to date with all our payments but for many reasons just want to get rid of our property. We asked the bank to allow us to use the Dacion en Pago. Initially they agreed, but came back and said head office would not authorise it as we there was no evidence of hardship on our account (ie we have never defaulted). Is it worth us getting a lawyer involved as we still just want to hand back the property to the bank?

katy
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Re: Cam Bank mortgage.... help

Postby katy » Tue Feb 02, 2010 9:04 pm

Has anyone ever heard of someone being chased/harrased for walking away from a mortgage /house in Spain. First of all they would have to use expensive resources to find out where you are and go through the UK courts, no record of any hasta ahora. If it's bad just b***** off...for all they know you could be in Malaysia or somewhere.

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Re: Cam Bank mortgage.... help

Postby julian » Tue Feb 02, 2010 9:53 pm

how about defaulting for a couple of months then applying again.

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Re: Cam Bank mortgage.... help

Postby Jool » Tue Feb 02, 2010 10:20 pm

Answer to Katy - yes for people who went back to UK and vice versa for people who fled UK to Spain......

Take Julian´s advice, you need to show you are in trouble before they will consider you......

muneca
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Re: Cam Bank mortgage.... help

Postby muneca » Wed Feb 03, 2010 12:51 pm

I am pretty confused! The Dacion only seems to apply is you are NOT in arrears, so how can we show we are in trouble unless we start missing payments?

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Re: Cam Bank mortgage.... help

Postby julian » Wed Feb 03, 2010 12:55 pm

good question...!!

Jool
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Re: Cam Bank mortgage.... help

Postby Jool » Wed Feb 03, 2010 2:18 pm

The process is default on payments, make payments late or only part payments over a number of months, contact the bank tell them how stressed you are, tell them you have no work and will probably have to look outside the EU, ask them to do you a huge favour and agree to dacion en pago, you understand that you must have no negative equity (not no arrears), and plead with them for help. It does normally help if you get a solicitor to do this for you for an agreed fixed fee as banks take you a lot more seriously if you are using a solicitor (cost 3 to 400 euros)

muneca
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Re: Cam Bank mortgage.... help

Postby muneca » Thu Mar 11, 2010 11:52 am

Do i have the right to cancel my mortgage and hand the keys back? i applied for the Dacion and it was refused by the bank on the grounds that we did not appear to be in a situation of distress

Jool
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Re: Cam Bank mortgage.... help

Postby Jool » Thu Mar 11, 2010 4:01 pm

No you do not have this right, the only way to be released from your mortgage is to get the bank to accept dacion en pago, which may mean you need to prove you are in distress, or sell your property. There is no other legal way, if you hand the keys in and do a runner the bank can and will pursue you throughout Europe....can you not re-negotiate the mortgage? You do have a right to re-negotiate the mortgage if you meet certain criteria and your mortgage is not over 175000 euros

See David Searl´s reply above to someone else.......

I know someone who successfully achieved dacion en pago after the bank initially said no so if you want to e-mail me your circumstances I may be able to help with some advice.


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