Beruflich Dokumente
Kultur Dokumente
1.
2.
The lender must not have started a repossession procedure against the property.
The borrower must be on time with the repayments as well as with the Community fees and local taxes.
The latter can actually be negotiated with the lender.
2.
3.
The lender will require the property to be reappraised. You will be expected by your lender to pay this in
advance. On average it's approximately 350.
4.
If on average the new valuation of the property covers the outstanding mortgage loan plus 13% of the
associated legal expenses the lender will accept to take the possession of the apartment, cancelling your
debits and will waive taking legal action both in Spain and abroad in your home country. As a rule-ofthumb the cushion of equity should amount to at least 20% of the property value.
5.
The day of signing the Deed at the Notary, the borrower will surrender the keys, and leave the property
clear of furniture and tenants.
6.
A dacin en pago is a win-win for both parties. The borrower is free at last and has managed to secure successfully
his assets whether abroad or in Spain from the lender or any law firm or debt collection company they may hire to
pursue the outstanding debt.
The lender on the other hand will now own the property outright and will have successfully waived a lengthy,
protracted and expensive court procedure (repossession) without having to apply the mandatory provisions before
the Bank of Spain to make up for this dubious loan which affects their liquidity ratios. These provisions set aside by
banks are being looked upon closely by credit-rating agencies post credit crunch and may ultimately affect their
share value.
-Lawbird is a firm of lawyers with a broad experience in Spanish Property Law. If you are struggling to pay your
mortgage perhaps we can help. The following services may be of interest:
Mortgage Subrogation
Mortgage Novation