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Landing Page Template

This is a template that is to be used for all lanidng pages across the EUPS website.

Main Headline e.g. ‘Negative Equity’

Negative Equity is simply, when the value of a property is less than the remaining outstanding mortgage. Although it is now less common, it is a serious problem across the continent and is still especially persistent in Spain.

Much of this Negative Equity stems from the global financial crash in 2007/8. Before this, house prices were massively inflated, and lenders were providing what would now be seen as outrageous mortgages. These inflated prices mean that many homeowners have witnessed a collapse in the price of their property.

Unfortunately, almost everyone in this situation will not see their property return to anywhere near its original value. In fact the issue has worsened due to Brexit and the Pandemic, with property prices only beginning to recover.

When Is Negative Equity An Issue?

The real problem with Negative Equity in Spain arises when you try to sell your property. After the sale, you are responsible for paying the difference between the sale price and remaining mortgage, also known as the shortfall. So for example, if you still have €100,000 left to pay but your property only sells for €70,000 you will need to pay the remaining €30,000.

On top of this, if you have missed payments, you may face penalties and costs added by your lender. Negative equity also makes it more difficult to find a willing buyer so your property may sell for below market value, further increasing the money you owe.

“Can I Just Hand Back The Keys”

The idea that a property in Spain can be abandoned or returned to the bank and be forgotten about is commonly believed but false. This will lead to you being pursued in your home country and could bring legal action or other serious consequences.

We understand that you may feel ‘trapped’ by negative equity i.e. unable to sell and unable to pay your mortgage but, this is not the only option.

How Lenders Can Pursue Your Debt

European lenders can and recover debts across the continent, in the UK and Ireland. The process for foreign debt recover is similar for all lenders and you will either be pursued by:

  1. Your original lender
  2. A solicitors firm based in your home country
  3. A vulture fund that has purchased your debt

The methods used by all of these parties are very similar. As well as this, all can be aggressive and persistent. You can read more about these recovery techniques and what they mean for you here.

How To Get Out Of Negative Equity

Unfortunately, as mentioned above, you will likely never see your property return to equity through the value increasing. However, this does not mean you do not have options.

EU Property Solutions have been assisting property owners in Spain for over a decade and have achieved life-changing settlements with all major lenders. Our dedicated and experienced team use their knowledge and understanding of lenders to help you escape from Negative Equity.

If you are worried about a Negative Equity property in Spain, our team are always available to chat. Feel free to call us for an-obligation free conversation and review of your case. You can call us on PHONE NUMBER or email us at [email protected]


Answer to FAQ


Answer to FAQ


Answer to FAQ

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 your best options to solve your property debt issues.

Click below to arrange a completely free, no obligation, initial consultation

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