Life in a complete mess, don't know where to post this.

Goldylocks24

Can anyone help me out of this mess. Any feedback greatly appreciated.

In 2003, My family and I moved to Spain, we purchased a house, with equity put down as a deposit and the remainder we took out a mortgage.

In 2007 we moved back to the UK and continued with the mortgage.

In January 2012, I separated from my husband, he stated when we separated that he would not pay his half of the mortgage, and since January he has not made one payment of his half. Since that date I have paid all the mortgage with all receipts to the bank to show for this.

I have contacted the bank, but to be honest they just want the mortage payment. I have seen a spanish soliictor who advised me of this options.

1. I can take him to a spanish court to have his name legally taken off the mortgage with the proof he no longer pays the mortgage. Will cost me about £10.000 to £12.000 to do this, I simply dont have this kind of money.

2. Buy him out. I simply dont have the money.

3. Sell the property, the spanish housing market is in a crisis, i would walk away with nothing.

My husband has come forward with a a deal where I give him £5000, he walks away, we draft up a letter with a solicitor to say he wants nothing to do with the house, but his name stays on the deeds because simply I cant afford the cost of £10,000 to £12,000 to do this.

I currently work part time, Im also doing a foundation degree, have 2 dependant children, receive my working tax/ child tax credits, and child maintainance. I rent a property here, and have had to move 4 times since arriving back from Spain, which is upsetting the children.

Im in a complete mess, sleepless nights with worry, I dont know what to do.

Can anyone help with straightforward advice, Im just getting deeper into debt each month.

Many thanks for any advice posted.

Dunroamin

I'd sell it to cover the mortgage ( if you can) walk away and start again. If you can't, let the bank repossess it.

thehappybutterfly

I second Dunroamin's suggestion. It's not worth the hassle and you'll only make yourself ill. And hopefully you won't make anything from it - your ex will just come running! He might not want anything to do with the house but just watch if it's makes a profit!

Sammy85_2

I'd let the house in spain go, get as much as you can for it that will enable you to clear the mortgage.

If all else fails let your ex know you plan to surrender the house to the bank - if he values his credit rating he may step up and stop it happening?

Do not take this option lightly though - the repossessed house is likely to sell for much less that its worth, possibly less than you owe, leaving you with a debt still and then you will have the additional costs incurred by the mortgage company and their fees and interest. You could end up in a worse position that you find yourself in now, still in debt and with a bad credit rating that may prevent you from buying again and perhaps even renting as alot of landlords carry out credit checks on potential tenants.

(Is it a spanish mortgage? - if so this article may be useful to you - http://www.spanishpropertyinsight.com/buff/spain/faq/spanish-mortgage-loans-an-overview/ )

Fire_Fox

Sell the property, you won't have to pay the mortgage, you may be entitled to more benefits because you don't have that asset. The equity that is lost is already gone unfortunately, it will cost to sell regardless of when that happens. You can then use your mortgage payments to make savings.

marisco_2

Goldylocks24 wrote: »

My husband has come forward with a a deal where I give him £5000, he walks away, we draft up a letter with a solicitor to say he wants nothing to do with the house, but his name stays on the deeds because simply I cant afford the cost of £10,000 to £12,000 to do this.

Even if you could afford it I wouldn't even consider this option. God forbid anything happened to you, but if it did he could conveniently forget about the solicitors letter and have claim to the property as his name would still be on the deeds. He doesn't come across as a type who would keep to his word or who puts the welfare of his children or their mother above his own needs. Look at how much worry, insecurity and upheavel you have all been through, partly due to his refusal to pay his half of a mortgage he is still liable for.

*Robin*

Before contemplating letting the bank repossess the house, could it be rented out to help pay the mortgage?

Otherwise sell it for whatever you can get, and accept having to repay half the negative equity minus whatever mortgage payments you've covered since your Ex stopped paying.

That would be much cheaper than getting involved with Spanish solicitors - the legal system there is a nightmare - makes me shudder just thinking about it.

As both countries are in the EEC the debt is likely to follow you - your Ex may well end up with a trashed credit rating if he simply abandons paying the mortgage - your priority needs to be avoiding letting him drag you down with him.

So either sell the house or get it paying towards it's cost, which would give you some breathing space to separate your finances from your Ex.

Good Luck Goldilocks!

ps. Whereabouts in Spain is the house?

Tiddlywinks

As you say, there's been a massive correction in the property market out there... so don't assume you know the property's value in today's market. It may not be 'walking away with nothing' as you suggest... it may be walking away with a debt owed, particularly with legal fees.

Before making any decisions, you need to fully work out the sums.

If you are really ending your relationship with your husband (other that for the care and contact of the children) then you need to sort the finances now; once and for all - leaving it would be like leaving an open wound which never really gets a chance to heal.

Savvy_Sue

marisco wrote: »

Even if you could afford it I wouldn't even consider this option. God forbid anything happened to you, but if it did he could conveniently forget about the solicitors letter and have claim to the property as his name would still be on the deeds. He doesn't come across as a type who would keep to his word or who puts the welfare of his children or their mother above his own needs. Look at how much worry, insecurity and upheavel you have all been through, partly due to his refusal to pay his half of a mortgage he is still liable for.

Hear hear ...

I've asked on the Living Abroad thread if anyone would take a look at this, my other suggestion is to find an expat forum concentrating on Spain (I'm sure there are some and they'll be mentioned on that thread) and work out your options clearly.

seven-day-weekend

Hi there. I've come over from the Living Abroad thread

There is a scheme in Spain whereby if you can no longer pay your mortgage, you can hand the house back to the bank, sign before a notary to say you have done so, and then don't owe anything (I think that is how it works ). It is called 'dacion en pago' and you will find more information here:
http://www.spanishpropertyinsight.com/buff/spain/faq/dacion-en-pago-finally-a-borrowers-right/

However, you may not qualify, as there are stringent conditions, but worth a try.

Also try posting in the Spain section on
www.britishexpats.com

One thing you will need is a good lawyer. If your house is in Granada province I can recommend one.

Hope this helps. Hope it all works out for you.

donny-gal

One question, which bank is the mortgage with?
The Spanish banking system are nowhere near as tolerant as they are in the UK, there is no easy payment methods, and you certainly would not get anything back if you let them re-possess it, they will sell it to get their money back as fast as thy can.
I agree with the option of selling for whatever you can get provided it will cover the mortgage, estate agents charges, and solicitors fees, if you let the bank repossess, if the sale does not cover everything, you will still owe them.
Check around solicitors too some are more reasonable than others, as estate agents are another story. DG