A sudden change in circumstances can make it easy to fall behind in mortgage arrears. Many of our clients come to us for advice on foreign property mortgage arrears, especially in Spain.
Depending on the lender, missed payments can spiral quickly, which in turn can add additional costs, interest and other fees.
Missing mortgage payments
Generally, you will not be seen as having defaulted after just one missed payment. They can be difficult, but banks will give you a chance to get back on track. You can have extra fees added for falling into mortgage arrears.
However, after 2 or 3 missed payments, you will face more serious action from your lender. At this point, they can begin repossession proceedings if they want.
The impact of mortgage arrears
The recovery process from your lender will begin when you miss 2 to 3 payments, and this is usually done via a letter that will inform you of the consequences. These letters are usually designed to scare borrowers into paying the full amount owed, and we recommend that you don’t respond until you have taken advice.
If you fail to take action, the lender will then start repossession proceedings, and they will likely sell the property with a shortfall, which, in return, you will be responsible for. When the process is complete, they will send you numerous letters asking for the amount, and in many cases, they will instruct debt collectors in your home country.
Find a solution to your mortgage arrears
Like any property issue, it is essential that you get the best advice on your mortgage arrears. Whether you want to renegotiate your mortgages or want to get rid of your property, EU Property Solutions is on hand to guide you through the best solution for you.
We have been helping clients achieve the best settlements with major Spanish lenders for over a decade and work hand-in-hand with a Spanish legal team to make this happen. Find a solution to your mortgage arrears today by calling our team on 0330 124 1230 or email us at hello@eupropertysolutions to book your free case review.
The common myth is that if a debt is ignored for long enough, it will be written off completely. There is some truth in this. However, if there is communication, attempted communication or acknowledgement of the debt in any way, this is not the case. This means that, realistically, it is very unlikely that your mortgage will be forgotten about.
If you default on your Spanish mortgage, the lender can repossess your property and sell it, often at a reduced price. Any remaining debt after the sale remains your responsibility and may be sold to a vulture fund. They will pursue repayment in Spain or the UK.
Typically, missing more than one repayment on your Spanish mortgage will result in legal proceedings by your bank.
