Can't pay your mortgage and don't know what to do?
With this article from our consultancy in Marbella we want to help you know what options you have when paying your mortgage payment is impossible. Get in touch with us to be able to advise you and find out in detail information about your case:
How to anticipate the economic problem and avoid falling into default
How can you negotiate different alternatives with the bank so as not to lose your home
What to do when everything else doesn't work and handing over the house seems the only way
Provide us your email and we will give you an appointment to study your case.
From the first moment that we have news or that we sense that our economic situation is going to get worse, we must go to speak with our bank and raise the situation, to be able to negotiate several solutions:
By lengthening the term of the mortgage, the amount of the monthly installments is reduced, so paying the mortgage may be possible if the installment is lower. The negative part of this option is that the total term of the mortgage increases and consequently the interests and the final cost of the mortgage loan also grow.
The deficiency can be of two types:
Partial: during a certain time we will only pay a part of the mortgage payment, either the interest or the capital.
Total: we will not pay the mortgage for a while.
Normally banks usually grant a grace period of up to 3 years, although it depends on each bank.
In both cases, whether we request a partial or total grace period, the term of the mortgage loan increases and the total cost of the mortgage increases.
It may be the last chance we have to pay our debts and not lose our home. Debt reunification consists of grouping in the same loan with a home equity guarantee, different loans or payments that we have open, such as a mortgage, a personal loan, a credit card, etc.
By grouping all the debts in the same loan, we will only have an interest and a longer term. However, the final amount to be returned will be higher than if we had paid for each product independently. Since debt reunification generates costs, which will be incorporated into the outstanding debt.
Another alternative, when we foresee that we will not be able to afford the mortgage payment, but we still have no defaults, is to sell or rent the house. In this way we can remove the problem from the environment without going into debt.
If we have a place to move to, renting the house may be the most interesting option, since with what we get from the rent we can continue to pay the mortgage. However, if we do not have any place to move we can sell the property.
Dation in payment in our country is not mandatory by contract. Currently only one entity offers the dation in payment by contract. Therefore, to obtain it, we must either negotiate it with the bank, or meet a series of requirements:
All members of the family must be unemployed and lack other assets or property rights.
It must be the only home owned.
The home must not exceed € 200,000 (although it depends on the size of the population).
The mortgage must not have a guarantor. In case of having it, the guarantor remains as guarantor of the loan, and if the guarantor has income or properties, the decree does not apply.
Cases that are not in enforcement proceedings.
The house is not taxed with subsequent charges, for example, an unpaid loan in which we had used the house as collateral.