Thread: Mortgage non payment urgent advise

Can anyone give me some advise please i am at the end of my thether?
Like many others due to the recession we are stuck between a rock and a hard place at the moment.We have a business in Spain for 20 years which up until 2 years ago was very sucessful (sound familiar)now we are in the position our outgoings are higher than our incomings.We cut everything to the minimum and cant do anymore here.I have approached the bank to see if we can go to Interest only Payments for a while and have had no joy (we dont have any arrears on mortgage yet)we do have a bank loan and overdraft thou. It is getting really close to the stage we will be unable to pay Mortgage and will have to hand the keys back but hope to avoid this at all costs
Has anyone else been in this situation? Or have any advice what else we can try how does repossesion work in spain or bankruptcy

Hola Ashley, my advice is get everything up for sale now. Don't wait.
Secondly you have to go back to your bank and insist you get a "Carencia" which is as you say , one years intrest only payments. See the manager, if no joy ask where the head branch of your bank is and go there. Also ask your accountants advice, or even get them to go to bank on your behalf.
It takes 12 months for a bank to reposess one house.

Ashley have you thought about using ebay to subsidise your income?

Also I'm not sure what area of work you're in but have you considered looking at 6 month/1 year contracts outside of Spain?....yes it would be a pain but it may help to keep things ticking over whilst the economy begins to turn round.....

Hi Ashley, Very sorry to see your predicament, I would have thought the last thing the bank wants is more property on it's hands especially when you are doing your utmost to keep going. Out of interest what sort of business are you in?

Thanks everyone
Sound advice . Estate agent in reply to my business. Please keep suggestions coming in.We really do appreciate all the help we can get

Whatever you do - don't hand back the keys to the Bank and think that will be the end of the matter. There are lawyers currently in the UK making a very good living chasing the debts of people now back in the UK and in the process issuing CCJs and wrecking their credit status.

Ashley, another angle to look at with the bank, is to organise with the bank that you can sell you property with the exsisting mortgage on it already.
Let's say your property is worth 150,000 euro and you have a mortgage of 100,000 K it will make your life easier selling your property for 50,000 with the mortgage already in place.

I am sorry to hear of your plight. First of all DON'T hand the keys back. Second badger everyone from you bank manager upwards, they will not want another property on their hands. If you miss a payment you will get phone calls from the securities department of the bank, explain your situation to them and ask for a period of interest only and tell them you haveinformed your local manager.
Try and pay as much as you can to show the bank you are trying to manage the situation, this helps show your commitment. Look at any and all options, if you can't sell there are property exchange sites etc which may be another option for you. Also consider one or both of you finding temporary work in the U.K and renting your place out, either permanently(on an 11 month contract) or as a holiday home.
Good luck and keep your chin up.