|
First month
After the first month of not paying your mortgage, the bank will contact
you by telephone to be sure that there didn't occur an error or mistake
by one of the two parts. If you pay the amount you owe plus extra interests
for paying your mortgage too late, the problem is solved.
Between the second and fifth month
If you owe between 2 and 5 months of mortgage to the bank, the bank will
try all possibilities to let you pay that amount. If it is not solved in
this way, the bank will attempt to make an appointment with you to negotiate
about an amendment in your mortgage. They will ask you to make a proposal
so you pay less every month and study the feasibility of your proposal to
try to come to an agreement. Extend the period of your loan or pay interest
only during a while are the most common alternatives. Once you reach this
stage, you owe already quiet a bit on extra interests during those couple
of months, so the amount you owe the bank will be a little bit higher.
During
this period there will occur an important change at your bank: if you do
not pay, you will have to provide your account with the outstanding amount,
which means, you have to reserve an amount equal to your monthly payment
according to the norms of the National bank of Spain. The money will remain
at the account, let's say, it will be frozen and from that moment on you
will become a problem for the bank while before you where just an impediment.
Sixth month
About half a year after your first in payment of the mortgage and after
having contacted you several times by written letter without any change
or cooperation of your side, the bank realises that it will become difficult
to recover the money they lend you for ordinary circumstances. Because of
this, the bank will request to execute your loan, which is no more or less
then ask the judge to execute the warranties you signed when you signed
the mortgage at the notary. Here you can still end the problem by paying
the amount of loan you owe plus interests for not paying the mortgage, which
raises every time a little bit more.
After one till one and a half years
The judge will register a date to sell your property in public. Until practically
the date of the public sale of your property, you can still pay of the amount
plus interests (something that has raised already quiet a bit by now) where
trough the process can be ended but if you don't, you will reach a critical
and painful moment: your property will be sold to the highest bidder and
you will have to leave the property.
Public sale of the property
Once,
according to the official way, the public sale of your property is stated,
it will begin at that date. The property will first be offered at the complete
amount you owe the bank plus interest and any other costs that may have
occurred during this whole process.
It is possible that your property is not sold during the first public sale
so it will be repeated. It is even possible that the property will be sold
to the highest bidder without minimum amount so that people can make their
offers. If then it is still not sold, the judge will tell what is going
to happen with the property but it is possible that the house will be assigned
to the bank, even if you still haven't paid of your debt.
If the property is sold during the public sale, there are 2 possibilities:
1) That
the amount paid for the property is higher then the amount you owed the
bank: in this case the loan amount will be paid of at the bank and they
will pay you the difference.
2)
That the amount paid for the property is lower then the amount you owed
the bank: the bank keeps the paid amount but you will still have a debt
at the bank for the amount they didn't receive during the public sale. The
bank will chase you and more important, the ones that signed for you (if
you used this form in that time to obtain the loan). During this process,
the judge has to decide how to pay of the rest of the amount. The judge
can even decide to seize a part of your wage, your personal stuff and from
the ones that have signed to bail you, etc. The objective of the bank is
to recover the money they lend you and which they didn't recover during
the public sale of the property, no matter what.
Never act as if there isn't any problem because
you are thinking wrong.
It is advisable always to stay in touch with your bank, no matter what difficulties
you may have.
When it is not possible to pay your mortgage as stated, you have to inform
the bank.
There are several possibilities the bank can offer you.
You can have a delay of paying or temperary stop of paying. The bank will
decide about that. Keep
in mind that banks don't get advantage by a public sale of properties.
Banks just want their money back with the profit as agreed. It's as simple
as that.
Also keep in mind that you don't have much to tell against the banks when
it goes wrong.
It is better to arrange things as good as possible or as the bank can offer
you.
Andaluscasas' phone number 0034 966 763 944 |
