The Online Actos Blog

In uncertain economic times, many people find themselves unable to make their mortgage payments. This often leads to homeowners defaulting on their mortgage, and defaulting on a mortgage for a primary or secondary residence can have serious repercussions for the homeowner. The repercussions of defaulting vary by state and province and by country, and can affect a homeowner for years to come, so he or she must fully realize what defaulting on a mortgage means to financial security and status.

For instance, when you default on Spanish mortgages, there are certain consequences. In past years, it was possible to default on a Spanish mortgage with little to no loss at all to the homeowner. This used to be true, especially for second residences or vacation homes. But now Spanish mortgage holders can and do pursue every legal means necessary to collect on their mortgages.

In case a homeowner must default on a mortgage in Spain, turning over the home to the bank is often an option. This option will save you money in court costs incurred by the bank when pursuing you for the balance, as well as additional interest on the mortgage during the court battle. However, turning the home over to the bank is a process that must be negotiated. The bank can to agree to accept the home back, but they do not have to. They will be rather unlikely to take the home back without good reason such as a hardship. Any homeowners that can prove such a hardship to the bank will be even more likely to succeed in negotiating a turnover.

If the bank rejects a home turnover offer from the homeowner, he or she will need to try to sell the home quickly. You should try to get as much from the home sale as you can, as you will still be responsible to the bank for any shortfall between the home sale amount and the remaining amount on your Spanish mortgage. They are more likely to do so if the shortfall is large. But the bank can legally attempt to collect any amount from you. This includes placing liens on any assists you may have, such as investment portfolios, your primary residence, and any other property you own that has value. This may take years to do, but the bank will not give up without getting their money.

Defaulting on a Spanish mortgage is an extremely serious situation, so it is essential that the homeowner work as closely as possible with the bank as soon as it is evident that defaulting is going to be unavoidable. Working with the bank that holds your Spanish mortgage can result in a fair settlement that benefits both you and the bank with as little impact on your other assets or financial holdings as possible.