If you are unable to pay your mortgage in Spain, you should contact Reuters Solicitors.
WE ARE EXPERTS IN CANCELLING MORTGAGE DEBTS.
There are two legal solutions to your mortgage in Spain:
- DACION EN PAGO
1. DACION EN PAGO
It is also known as “mortgage settlement” and it consists of getting an agreement with the lender (bank) by which the mortgage lender agrees to cancel the mortgage in exchange of repossessing the property.
As a result, the bank will be the owner of the property and it will cancel the mortgage debt.
This process has a singularity which is that it is very important to know how to negotiate with the lender. Reuters Solicitors recommends to hire the service of a solicitor who will reach the agreement on your behalf.
It is not necessary to travel to Spain. Most of Reuters Solicitors´ clients give Power of Attorney to our solicitors in order to avoid visiting Spain.
We will study your specific circumstances to reach the outcome (mortgage cancellation) in the shortest time possible.
If community or council tax are also owned, we will work for including these debts in the deal with the lender.
Dacion en Pago will require a previous appraisal / valuation of the property which will verify that the property is not rented, there are no squatters and that there are no damages. The appraisal will be paid by the bank and it will determine the current valuation of the property which will be recorded at the Dacion en Pago deeds.
The client needs to give access to an Independent Valuator Company for the valuation. Reuters Solicitors will deal with this procedure on your behalf. The client will post the keys to RS and we will make all requested appointments.
Once we have solved all previous issues, and the lender/bank agrees the settlement, the completion of the mortgage cancellation will take place in front of the Spanish Notary and it will be recorded at the “Dacion en Pago deeds”.
The deeds will prove the lack of responsibility of the client with the property and debts.
The deeds will be recorded at the Land Registry for legal publicity.
Quita is very useful when a mortgage is in negative equity and the bank does not accept Dacion en Pago.
A purchase with Quita (“compraventa con Quita”) is a negotiation with the bank/lender where you ask the bank to write off the difference between the sale price and the mortgage debt.
It is necessary to put the property on the market by a competent estate agent. Once you have a purchase offer, Reuters Solicitors will negotiate with the bank to write off the difference between the sale price and the mortgage debt.
Reuters Solicitors has solved quite a lot of cases with Purchase with Quita. Our clients do have to nothing, we deal with the whole process (i.e.: drafting POA, contact the estate agent, value the property, calculate the debts and taxes, find a buyer, negotiate with the bank, etc.)
One advantage of Quita is that the bank will not pay taxes, community debt, notary, land registry, etc., so the cost will be lower than agreeing a mortgage settlement (Dacion en Pago).
The agreement will be recorded at the Notary by singing a purchase deeds and a cancellation deeds.
Both deeds will be registered at the Land Registry for publicity.
We are experts in cancelling mortgage debts.
Reuters Solicitors have solved thousands of mortgage problems in the last 10 years.