ARCHIVED - Contact EU Property Solutions to solve increasing mortgage debt in Spain

From mortgage settlements to IBI tax arrears EU Property Solutions will help you find a solution

EU Property Solutions assist people who have significant mortgage arrears and/or missed community fee payments on a daily basis.

Many borrowers who have purchased properties in Spain are not made aware before they buy of the associated costs such as community fees and IBI taxes, and these additional costs, added to mortgage debt, can result in significant stress.

Community fees are owed to Community Presidents in Spain. These Presidents are charged with ensuring the community in which you have purchased is maintained in good condition, and that tasks such as maintenance of common areas, lift maintenance, swimming pool cleaning and general upkeep are undertaken professionally and on a regular basis. It is important for borrowers to keep up to date with these fees as debt collection can be instructed by Community Presidents in Spain to UK and Irish Debt Collection Agents.

IBI taxes are taxes paid to the local council by property owners – essentially, council tax. These need to be cleared with no arrears before any property can be bought or sold, and as it is a state debt there is no debt forgiveness available.

In the case of failure to pay repayment instalments on Spanish mortgage loans, if you fall into arrears then your mortgage balance will increase, as 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.

If you simply cannot maintain payments on your Spanish property, then swift action is needed before the outstanding capital spirals and the issue spins out of control. By acting quickly through an intermediary, such as EU Property Solutions, you can take control again and after negotiating with the lending bank an amicable and desirable outcome can usually be achieved.

In most Spanish settlements EU Property Solutions can achieve the surrender of the property to the bank in exchange for a complete debt write-off, often also including the write-off of Community Fees and IBI tax arrears in the agreement.

In other words, there IS a way out of increasing property debt in Spain, so don’t imagine that the problem of increasing debt will go away if you ignore it: instead, contact EU Property Solutions and make sure the situation is brought under control and rectified.

If you are struggling with any repayments on your Spanish property mortgage call EU Property Solutions on (+44) (0)330 124 1230 for a free case review.

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EU Property Solutions, Park House, Park Square West, Leeds LS1 2PW

Tel: (+44) (0)330 124 1230 or just one click on the website to request a call back

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Assistance and advice for those who bought into the Spanish property dream and ended up living a nightmare

UK nationals often leap at the chance of owning a property elsewhere in the EU, with Spain being the favourite location for retirement and holiday homes, but occasionally their “dream homes in the sun” can turn into financial nightmares and in these cases EU Property Solutions offer practical and effective solutions to rescue buyers from crippling scenarios for which they are often not to blame.

One of the most common problems facing buyers in Spain is that of negative equity. Before the Spanish property market began its fall into decline in 2008 many buyers took advantage of over-generous mortgage lending terms to invest in overvalued property, as a result of which their homes are now worth far less than the price at which they purchased them. With high mortgage payments still outstanding - many of them now increasing as 10-year interest-only period expire - these owners believe they simply cannot sell, as the revenue would not bring in enough money to pay off the loan capital.

In this situation, many describe themselves as "mortgage prisoners", one of the phrases most frequently heard by the professionals on the staff of EU Property Solutions, but the belief that selling in negative equity is not an option is a mistaken one.

EU Property Solutions are experts in this field and have assisted in negative equity sales across Europe: even when the selling option is not available it is essential to seek professional advice in order to understand your circumstances exactly: there are almost always other possible solutions by which you can rid yourself of your negative equity burden in Spain and throughout Europe.

Another problem related to the boom-and-bust cycle in the early years of this century in EU Property Solutions for ways out of Spanish property debt nightmares the Spanish real estate market is securing a return of deposits on off-plan properties which were never completed. it is over a decade since the period of speculative buying in the boom years came to an end, but even now there are countless purchasers who handed over a deposit only to see the developers walk away from the construction project, taking the up-front deposits received with them.

In cases such as these EU Property Solutions have a 100-per-cent success rate, usually securing repayments significantly in excess of the amount originally paid. For example, a deposit of 100,000 pounds paid in 2004 might now entitle the purchaser to a refund of 160,000 pounds, although of course the exact amount will depend on the exact date of transfer, fluctuations in exchange rates and yearly interest rates.

The payment of these refunds was made compulsory by a Spanish Supreme Court judgement in December 2015 which stated that banks and property developers must refund deposits paid on off-plan property purchases when the property was never completed, and since then EU Property Solutions have lodged numerous cases in the Courts. They fully understand the legal process for obtaining a deposit refund, and that it is essential to follow process closely in order to guarantee success, always assuming that all of the relevant paperwork is made available.

You may have thought that a deposit you paid years ago was gone forever, but that’s not necessarily the case!

Similarly with all kinds of property debt: a large proportion of the clients of EU Property Solutions are people who invested In a property in Spain during the boom years and saw their homes completed but in a financial climate very different from the one in which they bought. This is the case in numerous coastal locations in southern Spain, including Roda Golf, Manilva Hills, Corvera, Torrevieja, Estepona and Los Alcázares to name but a few, and with banks at the time far too willing to lend money and corrupt planning regimes distressingly common, the result was a toxic concoction that was only ever going to end one way.

While some developments remained unfinished, in others homes were handed over to buyers but with drastically reduced market value and in deserted, run-down environments, leaving the owners with large mortgages on properties they no longer wanted. Again, EU Property Solutions have the expertise and experience to help people out of such situations: seek advice from the experts in this area and make it easy to see the future and move forward with their impartial and tailored advice.

Other specialist fields in which the team at EU Property Solutions can help out at both their UK and Spain offices include mortgage reclaims, repayment arrears and repossession orders and new mortgage advice for those currently buying: in short, a complete troubleshooting service for those who have fallen foul of the many potential pitfalls in buying a property in Spain and for those who are anxious to avoid doing so in the future!

Consultations are completely free and the obligation of EU Property Solutions is always to the client, enabling them to provide strategies some may not be able to. Call the team today to arrange a meeting with one of the team of Insolvency and Debt consultants who specialize in Spanish property debt, and begin the process of finding a tailored pre-insolvency strategy whether it is debt write-off, a returned deposit, help in ridding yourself of a property in negative equity or any other scenario.