Received A Letter From A Spanish Bank
Spanish lenders can sometimes be slow to contact you regarding your property debt however, this does not mean that they have forgotten about you. It could be years before you receive correspondence but, you are still as liable as when you first took out your mortgage.
This can cause immediate panic and leave you wondering how it could impact you. But don’t worry, there are ways to deal with these lenders.
Read on to find out more.
If you are reading this page, you have likely received a letter from a Spanish Lender. This can be an extremely stressful and worrying experience. However, there are always options available.
A letter/email usually means that your lender has decided to recover the money that you owe. This could be because you are in mortgage arrears, you have ‘handed back the keys’ or have a shortfall that the lender wants to recoup.
The timescales vary greatly, but Spanish Banks have a lot of ‘bad debt’, so they can be slow to begin proceedings. But, once they begin, they can be persistent, aggressive and difficult to deal with. We have heard of clients who have had no contact for 15 years, only for the lender to start sending threatening letters to their home address in the UK.
Why have I received a letter?
A letter is usually a formal demand for a debt to be repaid, often for ‘payment in full’. This means the lender wants you to pay the entire amount owed. This amount can vary wildly depending on additional charges and legal fees, as well as whether your property was repossessed. Often you may receive demand for payment of an amount much larger than anticipated.
As mentioned above, lenders in Spain can be slow to begin, but once they begin recovery procedures, they will not stop. There are 3 common scenarios:
- The lender has handed the case to their in-house recovery team after you defaulted or missed payments.
- The lender has appointed a solicitor in your home country to pursue you. These legal firms are experts at debt recovery and can be ruthless.
- A third party, also known as a Vulture Fund, has purchased your debt from the original lender. These companies are the most difficult to deal with. Click here if your lender has sold your loan to a vulture fund.
What happens after you receive a letter?
Letters, emails or phone calls are the standard first step in the recovery process. If these letters are ignored, the lender will proceed, regardless of your non-compliance. Often lenders will send these letters to your Spanish property, so you may not even be aware of their existence.
After this, the bank will usually look to secure a judgement in your home country. This is possible across almost all countries, especially if you live in the EU, UK or Ireland. A judgement is the courts recognising that you owe the debt the lender claims.
After this, they will be able to apply to repossess or place a charge on your property and try to recover money from other assets. They also may choose to appoint a solicitor to carry this out if they have not already. Some of the common debt recovery agencies in the UK are:
- Pepper Finance
- LCS Debt Collection
- E&G Solicitors
Letters sent by lenders are designed to be threatening enough to make you pay. We understand this can be worrying, especially when your home and assets are on the line.
That is why EU Property Solutions are always here to help when your lender comes knocking. We have been helping those struggling with Spanish property debt for over a decade and have achieved amazing results for hundreds of clients.
Whatever the issue is, our experienced team and legal contacts know how these lenders work and how to deal with them. This unique approach allows us to get the best outcome for you.
So, if you have received a letter from your foreign lender demanding payment, don’t bury your head in the sand or wait until it’s too late – call us on 0330 124 1230 or email [email protected].
We are always happy to give a free, confidential case review.
Does This Mean I Will Lose My Home?
This sort of action is the first step to recovering debt. Whilst repossessing your home and/or assets is potentially a part of this process, it is not a foregone conclusion. If you act quickly and get the right advice, you can avoid any further negative impact on you.
Should I Contact My Lender?
No. Letters and communications from lenders are always designed to scare you into paying. It may be tempting to contact the lender yourself to try and explain your situation. However, this could do more harm than good, depending on what you say.
Why Should I Trust EU Property Solutions?
For over a decade, we have been helping people in exactly the same situation you find yourself in. We understand that the bank, developers, and estate agents have all lied to you. If our amazing results don’t say enough for themselves, check out some of our testimonials or call our office and speak to a team member. You can even chat with previous clients of ours over the phone!
Why not get in contact?
We are always happy to offer a free, confidential review of your situation.
This helps us understand exactly what you need and helps you understand the best options to solve your property debt issues.