Currently, in Spain, banks have no legal obligation to offer the dation in payment if you can not continue paying the mortgage. Therefore foreclosure is still common in our country. To avoid having to go through an eviction, in HelpMyCash we offer you some tips that can help you if you find yourself in this situation.
1. Insurance that serves as a network
If we are going through a difficult economic time and it is impossible to continue paying the mortgage payments, having hired an unemployment insurance or payment protection, it may be a temporary solution.
This type of insurance can cover the last 12 monthly installments without paying, therefore in the short term you can avoid a bigger problem.
2. Do not let time go by waiting for a miracle
If our economic situation worsens, we must start making decisions. For example, we have lost our job and we are unemployed, we do not have to wait for it to end. We must take advantage of the fact that we still have options and maneuverability. It is time to negotiate with the bank and expose our situation.
However, if we let the time pass, waiting for the situation to be resolved without acting, unemployment may be exhausted. Then we will not be able to continue paying the mortgage, so not only will we lose our house and everything we have invested to date, but our debt will increase even more because of default interest, non-payment fees, court costs, etc. We must try to avoid reaching this situation.
3. Negotiate with the bank the conditions of the mortgage
Request a deficiency or extension of the amortization period, taking into account that in the long term, both options will suppose an increase in interest.
Lack of capital. For a few months, we will only pay the interest on the loan http://1morefilm.com/get-a-payment-loan-that-is-rapid without amortizing the principal. This operation can reduce the quota by up to 50%.
Total lack. If it is still not enough, we can try to negotiate a total lack to pay neither capital nor interests for some time.
Extension of the term. You can try to negotiate with the bank to increase the number of years in which to return the term, reducing the fee and so go more relaxed at the end of the month.
4. Consider the possibility of selling or renting the house
Sell on time It does not have to be the last option since in many occasions it is preferable to sell the house to be able to pay the debts than to see ourselves homeless and overwhelmed by default interests that we can not face and will not allow us a second opportunity.
Rent part of the house. If we can have a room or a part of the house, it would be a good method to generate certain income by renting it to someone, and with the money obtained, help pay the monthly payments.
5. Look for help in an association such as PAH
These associations help the mortgaged with payment problems by providing information, conducting public events and rallies, taking legal action and avoiding some foreclosures (read how the PAH stops evictions). We can contact them by filling out this form or going to the nearest office.
When can you get the dation in payment?
The dation in payment is included by contract, as in the case of the Mortgage Without More of Bankinter, which is the only one that currently offers this possibility.
If the client has not been able to access a debt restructuring.
If the entity adheres to the Code of Good Practices, and if the client also meets these 6 requirements:
All members of the family must be unemployed and have no other property or economic rights.
It must be the only property owned.
Housing must not exceed € 200,000 (although it depends on the size of the population).
The mortgage does not have to have a guarantor. In case of having it, the guarantor is the guarantor of the loan, and if the guarantor has income or property, the decree does not apply.
It must not be in the execution procedure.
The housing cannot be taxed with subsequent charges.