What happens once I default in my mortgage payments in Spain?

Q-What happens once I default in my mortgage payments in Spain? I really cannot afford keeping those payments up…

A- 1. Generally, Bank will send to you a notice after three monthly defaults. This is not regulated in any Law, it is just common practice.  An active negotiation with the Bank, with the help of a professional, is needed here.
2. Once they send the file to Courts, the Judge will issue an enforcement order and will notify this to you for you to oppose it. Notification needs to be made to you in due address and through right means. By “right address” I mean the address that was agreed as address for notifications in the mortgage deeds.  You need to have full control of any notification being sent there after your payment default as this is in many cases an advantage that is taken by Courts— notify you while and where absent— for obstructing your defence rights.

    3.-This notification enables you to defend your position. Reasons to oppose the enforcement have been increased recently after a Decision by the High Court of Justice of the European Union. 

    4.-I always advise clients to answer the repossession with a dation counteroffer in order to  reach an agreement with the bank to have the whole debt  settled after the auction.  Of course the difficulty of this varies depending on the equity you have on the house and policies of the Bank.

    5.-As you know the way the Bank has to obtain  liquid value out of the house is through public auction after which, if no one bids, the bank can keep it for no lower than 70% of the price ( for first residences) and 50% ( for second residencies) of the house when  it was valuated for mortgage purposes ( this value is contained in mortgage deds and it is the sum of borrowed capital+ interests+ legal expenses)

Never leave a repossession order unattended , have control of the address for notifications, hire a good lawyer.

After the debt is liquid an enforceable, they can start an European Enforcement Order in the UK. 

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