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English speaking Spanish lawyer Solicitor in Denia, Java, jalon, moraira, pego, pedreguer xativa, inland... |
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Lawyer in Denia (Valencia), Xativa (Alicante) |
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RENEGOTIATING YOUR MORTGAGE AND CREDIT IN SPAIN
Some advice before you begin:
1. Speak with your bank and never stop making your payments. All banks have had to offer ways to refinance debts. Banks always prefer to be paid, even if it takes longer, than to have a delinquent on their hands. 2. If you have personal loans, cancel them and regroup them together with your mortgage, since personal loans tend to have higher interest rates. 3. Stay away from finance/credit companies and go straight to the banks. 4. If your home is auctioned, it doesn’t always solve the problem. If the bank does not receive full payment on your debt with the sale, you continue to owe them money. Giving the bank the keys to your home will not take care of your mortgage. Your home may be appropriated for only 30% of its value to cover late fees and interest. After that, the bank has the right to cede the house to a third party without being reflected in their accounts, keeping them clean. At this point, there are only two solutions: Bankruptcy (which is normally not an option given by the judge it can only delay the payment 2 years) or looking for a buyer willing to pay more for your house than the bank. If your bank is not helpful, go to other banks and explain your situation.
How can conditions of your mortgage change?
· Raising or lowering capital · Length of the mortgage · Conditions of interest · The method or system of pay off and any other financial conditions of the loan The modification or rendering of personal guarantees
In what cases can a mortgage be subletting?
Just because you get your mortgage from one bank does not mean you have to stay with them for forever. It is possible to transfer mortgages from one bank to another that has better offers for the payment plan, interest or both. This is called “oferta vinculante”, with determined limitations.
How do you do the subletting?
If someone has their mortgage loan with one bank and another bank offers them better conditions, the new bank must present this offer in writing. The conditions offered must be transferrable to the existing loan. This “transferrable offer” is what initiates the process of subletting.
Can clients change their mortgage to another bank whenever they want?
Currently, changing of banks is limited. Although you technically do not need the initial bank’s approval, they may offer the same or better conditions through what is called ““enervar la subrogación”
Postponing the payment obligation
Through the Instituto de Credito Oficial (ICO), there is a possibility of temporary and partial deferment of the payment obligation. It is 50% of the amount of the monthly mortgage payments from the period between March 1st, 2009 and February 28th, 2011, with the following requisites:
A minimum of 500 Euros to a maximum of 12,000 Euros monthly In favor of set resident groups in Spain |
