Walking away from Spanish property
Discussion
My work colleague is part of a group of failed Spanish property investors. He bought a place, tried to sell, tried to rent, tried to use as a holiday place.... none of it has worked. It has cost an absolute fortune & cannot be sustained any longer. The only option, ( for their sanity & at least one marriage ), is to hand it back, either to the bank or the developer, ( although i would guess, he's now bust as well ).
Has anyone here had any experience of how hard the Spanish banks chase you ( we're talking, throw the keys back at the bank & run like the wind!! ).
Can they persue you in the UK?
Can they claim on UK assetts?
Cheers on his behalf ( not a pher )
Has anyone here had any experience of how hard the Spanish banks chase you ( we're talking, throw the keys back at the bank & run like the wind!! ).
Can they persue you in the UK?
Can they claim on UK assetts?
Cheers on his behalf ( not a pher )
SystemParanoia said:
what kind of monthly costs is he paying?
where is the property? ( google maps link ? )
if hes just gonna try handing it back and run, maybe someone can just take over payments and ownership instead?
They have tried everything, no go.where is the property? ( google maps link ? )
if hes just gonna try handing it back and run, maybe someone can just take over payments and ownership instead?
Mortgage costs are about £700 per month
My understanding is that not paying is a seriously bad idea. I believe that in Spain the debt is not limited to the property, the bank can pursue the debt against any assets (much like they can here). So if they stop paying the debt will start to accumulate quickly and the Spanish bank can look to recover it from their assets here as well as the property in Spain. Whether they will do so is the gamble.
siscar said:
My understanding is that not paying is a seriously bad idea. I believe that in Spain the debt is not limited to the property, the bank can pursue the debt against any assets (much like they can here). So if they stop paying the debt will start to accumulate quickly and the Spanish bank can look to recover it from their assets here as well as the property in Spain. Whether they will do so is the gamble.
I think there are a lot of people whi simply cannot afford their obligations. The "places in the sun" were a luxury, that can no loger be maintained!What do people do??
siscar said:
My understanding is that not paying is a seriously bad idea. I believe that in Spain the debt is not limited to the property, the bank can pursue the debt against any assets (much like they can here). So if they stop paying the debt will start to accumulate quickly and the Spanish bank can look to recover it from their assets here as well as the property in Spain. Whether they will do so is the gamble.
He's right. And he better hope the debt is not with Santander or BBVA. Those two will chase you to hell and back for their money and the accrued fees.Pain ahead fella I'm afraid.
A few colleagues here who were spouting off about having holiday homes in the good times "you can stay whenever you like, we don't rent it out" are since renting their places out to local people full time.
I can't see the rent covering the mortgage so I guess they are hoping to cover their payments without losing the place.
Good luck to your friends, hopefully they can work through it.
I can't see the rent covering the mortgage so I guess they are hoping to cover their payments without losing the place.
Good luck to your friends, hopefully they can work through it.
cirvy said:
What do people do??
Harsh answer is not spend what they can't afford. There are loads of people out there who have relied on letting, bonuses, free cash flow etc to buy property that they could never afford if the economic situation changed from the "finance free for all" we witnessed upto the middle of 2008.Sensible answer would be to use Google to locate Spanish property owners in the same position and seek advise. Further sensible answer is to approach local Spanish property lawyer (get a recommendation) and pay a few Euros (or possibly a lot) for their advise. It might be good (ie: run away and don't come back) or it might be bad (ie: yes the debt will be chased to the death) but at least have the guy in question do some research on the legal position he is in.
groak said:
Depending where it is and how much it is I MIGHT buy it. I should warn you, though, I am tooth-grindingly vulturous and only interested in the type of bargain that would make a usurer blush.
I suspect that there are only 23 homes in Spain that wouldn't accpet your offers right now 
It's as f
ked out there now as we'll be in a years time.Gassing Station | The Lounge | Top of Page | What's New | My Stuff