Posts Tagged ‘Bankia’
Community fees and IBI taxes can be unexpected extra costs for property owners in Spain. They become a more serious issue when you are struggling to stay up to date with these payments or if you have to choose between paying these or your mortgage.
Community fees are owed to Community Presidents in Spain. These Presidents are charged with ensuring the community in which you have purchased is visibly up to scratch – for example, the maintenance of common areas, swimming pool cleaning and general upkeep of grounds.
IBI taxes are paid to the local authority and are used to pay for local services and infrastructure such as roads, rubbish collection, street lighting and general maintenance.
What Happens if I Can’t Pay?
If you can’t pay community fees the community president will contact you to request payment as soon as possible. If you can’t pay, the community issues a court demand for payment. In extreme cases, the community of owners can request the sale of the property to receive payment for outstanding debts.
It is important for borrowers to keep up to date with these fees as debt collection agencies can be hired to chase you in the UK and Ireland
If you don’t pay IBI taxes you will be charged a penalty fee. This can be between 5% and 20% of the total owed. Ultimately failure to pay I.B.I on a property could result in the loss of the property.
If you are struggling with community fees and IBI taxes, you may also be falling behind on your mortgage payments. EU Property Solutions assist people daily who have significant mortgage arrears and missed community fee payments. Many borrowers who purchased properties in Spain were not aware of costs such as Community Fees and IBI taxes. These additional costs and Mortgage Debt in Spain can result in significant stress.
Missed payments are added to the balance along with penalties and interest. Furthermore, you risk legal action and ultimately you are putting your home assets and income at risk if you do not act.
What are your options?
If you cannot maintain payments, then swift action is needed. If you act quickly through an intermediary, such as EU Property Solutions, then the matter can be brought under control and an amicable and desirable outcome achieved.
In most Spanish settlements we can achieve:
- The surrender of the property to the Bank and a complete debt write off.
- We can even negotiate Community Fees arrears and IBI tax arrears into the settlement.
Visit our YouTube channel, we publish videos on a weekly basis. This week’s video sees our client, Sue Geraghty discuss the issues she was facing before appointing our services. CLICK HERE TO WATCH.
If you are struggling with any repayments on your Spanish Property call EU Property Solutions on 0330 124 1230 for a free case review.
Are you in Negative Equity and do not understand the meaning?
Sort out your Spanish property issues today! In simple terms; Negative Equity occurs when the current loan or mortgage balance secured on a property is higher than the current market value of the property. Subsequently, some borrowers refer to them as Negative Mortgages.
For example, if a borrower’s current mortgage balance is €150,000; but a recent comparable property may have sold for €100,000 (before selling costs of c8-10%)…this borrower is in Negative Equity and faces a mortgage shortfall of €50,000+.
Such Spanish property issues/shortfalls are due and payable in full as and when the property is sold or disposed of.
EU Property Solutions have had contact with and helped many hundreds of people who purchased in Spain and across Europe at the height of the crazily inflated market, pre-2008.
These couples and individuals took out huge mortgages which were too readily available. These scenarios in turn later left the majority of mortgage holders in some form of financial difficulty. Leaving them exposed to an asset with falling value.
Many who still own a property in Negative Equity feel trapped. They are unable to move on, being dubbed ‘mortgage prisoners’ or ‘Stuck in the Sun’.
Furthermore, EU Property Solutions are experts in Spanish Mortgage Law; assisting borrowers who still suffer from a Negative Equity loan. We and our hand-picked legal teams work with all lenders across Spain. We can tailor our services based on your circumstances and lender.
A recent example saw us settle a Negative Equity position on a proposed sale of c€120,000 for £25,000 including costs. Genuine telephone testimonials are available to support our work.
Borrowers often bury their head in the sand. They face the very real risk of Spanish mortgage default or Spanish mortgage repossession. These scenarios can be life-changing and will expose your UK Assets and Income.
Dealing with the situation and acting now is key. EU Property Solutions legal team in Spain is ready to assist.
Don’t be a mortgage prisoner – let us find you a way out of this predicament.
Call EU Property Solutions today on 0330 124 1230.
Welcome to today’s blog on Webinar Feedback – Mark Stucklin. As you may be aware we held our first-ever live webinar on the 27th May 2020 on Spanish & Cypriot Property Debt. If you happened to attend, we would love to hear your thoughts on it, send them over to us on [email protected]
If you are interested in watching the live webinar over again, you can do so here: https://youtu.be/E4aRc_l8Oz8
We had a great blog write-up from Property Market expert Mark Stucklin who discusses our webinar below.
The economic crisis building as a result of the coronavirus pandemic will leave some people with mortgages in Spain in financial distress, through no fault of their own.
If this happens to you, it is advisable to seek help from independent experts on how to handle the situation.
Last week I attended my first webinar (online seminar, for those that don’t know), held by Terry Bell, speaking on behalf of Bell & Co. in the UK and Ireland, and EU Property Solutions in Spain and Cyprus.
These companies specialise in helping people with business and personal debt find negotiated solutions to their financial problems.
Terry’s presentation about the typical financial problems borrowers from the UK and Ireland run into with mortgages in Spain and Cyprus was an eye-opener.
For instance, there are still many people struggling with mortgages taken on in the boom years before 2008. They are not getting any younger.
Terry explained that the “demographic” of people with mortgage problems in Spain means that time is not on their side. They need to sort out this problem before it’s too late.
There are many people in arrears on their mortgage payments who think they can walk away from their foreign debts. They think the problem won’t catch up with them back home. That is wishful thinking, even for those who did this years ago.
Slowly slowly, Spanish mortgage debts are being worked through. Debtors are pursued back home on the basis of EU directives, increasingly by vulture funds who have bought the debt.
The worst thing you can do is stick your head in the sand and hope the problem will go away. It won’t.
The best thing you can do is contact third-party experts like EU Property Solutions, who have dealt with many cases like yours, and know what to do to get the best solution for you.
Experience is key to negotiating the best terms in this complicated situation. This is probably something you have never had to deal with before. And every lender in Spain has a different approach to dealing with what they refer to as ‘delinquent debt’. Only experience of dealing with many cases helps you decide the right strategy.
Terry talked about all the problems facing borrowers in Spain and Cyprus. There’s one brutal problem in Cyprus – that we can be grateful few borrowers in Spain are having to deal with:
- Namely the Swiss Franc mortgages that were so gaily mis-sold to borrowers in Cyprus back in the boom years.
Since then, the value of property in Cyprus has plummeted:
- Whilst the Swiss Franc has appreciated, crushing borrowers financially in a vice of negative equity.
Mercifully, most borrowers in Spain have euro mortgages, but some of them will still be in negative equity more than a decade after they purchased.
And now we have a new wave of financial problems to look forward to, thanks to the coronavirus crisis.
If you find yourself in financial distress, and unable to cope with your mortgage in Spain, don’t stick your head in the sand, get in touch with EU Property Solutions.
Following the UK confirming that those returning from overseas travel will have to Self-isolate for 14 days, the Spanish Government has followed suit imposing the same restrictions. With this in mind, the question is – will you be receiving no rental income in 2020?
This year’s Summer Holiday season may well and truly be cancelled.
If you are reliant on rental income to support:
- Your mortgage payments,
- IBI taxes, and
- Community Fees on your Spanish Second Home –
The above will see you face increasing pressure to top-up payments from your home income.
Speaking with a local Costa Del Sol Agent:
- It was confirmed that many Second Home Owners will take on long term rentals but given supply, these rental agreements will be very low in income.
Furthermore, many will be left without employment & may fall behind on their rent.
Second Home headaches are stressful enough in more positive times, but in these trying circumstances, they can be a real burden.
EU Property Solutions can end this burden in an effective manner without the need to travel to Spain.
We can help so your not asking yourself if you will be receiving no rental income in 2020?
Especially if the mortgage is greater than the true market price and the associated selling costs…which can be as much as 12%.
EU Property Solutions have options and plans for every eventuality, ensuring we protect you, your income, your home, pensions, and other assets – from any potential or ensuing legal threat.
WE HAVE THE SOLUTIONS TO DEAL WITH SPANISH PROPERTY DEBT ISSUES.
CORONAVIRUS – NO TRAVEL, NO PROBLEM – WE HAVE THE SOLUTION FOR YOU.
The world continues to be an uncertain place. In the UK the Government has announced its stepped plan to restore normality in the midst of Coronavirus – travel restrictions. We can help you get rid of your overseas property – without visiting Spain.
One thing that has hit the headlines is a 2-week self-isolation for those returning from abroad, bar France.
This is clearly detrimental for those looking to get rid of property overseas, especially during this period. No one wants to self-isolate for 2 weeks having been on lockdown for some time.
EU Property Solutions legal process allows you to get rid of your overseas property without visiting Spain. Here is how:
- You swear a Power of Attorney allowing our Legal Team in Spain to represent you and sign documentation in the country on your behalf. This is arguably the most you will travel – to a local notary to have this document sworn.
- We will arrange access for a Lender Valuation. Just give us the keys or tell us your keyholder’s details.
- We will communicate with the Lender on your behalf. Including any face to face requirements.
- We will sign the Legal Paperwork and conclude the case on your behalf.
Trust is key in this process. Trust us to do right by you and we need to trust you will cooperate to get the desired conclusion.
If your Spanish property is detrimental, especially now during this pandemic ~ respond. Allow EU Property Solutions to resolve the matter on your behalf from the safety of your home.
EU Property Solutions have options and plans for every eventuality. We ensure we will protect you, your income, your home, pensions, and other assets – from any potential or ensuing legal threat.