Read the below legal tips by CostaLuz Lawyers:
• Any notification to the debtor must have been practised by the courts after investigation of different possibilities. It is not enough if the Court just tries the foreign address in Spain which was mentioned on the deeds.
• Action taken cannot be based on an illegal or abusive clause (floor clause, early expiry clause, debtors’ interests’ clause…)
• Law has imposed Bank a minimum value (50% of auction value of the property) for the event of repossession by them after an auction with no bidders. If your debt is below that minimum (contact us for us to tell you if it is) they cannot enforce further assets and a negotiated repossession has many possibilities of success.
• Calculation of the outstanding debt must be correct, if is not, the repossession procedure started by the Bank might be declared void.
• If the bank sold your mortgage loan contract to a third party who did not registered his rights at the Land Registry; and it is this third party who is claiming against you, you can plead lack of legitimation of the claimant for not being the registered holder of enforcement rights against your property.
• Finally, many Courts in Spain have frozen repossessions procedures started by banks as they wait for Brussels to make a decision on the early expiry clause. For this same reason, a settlement is now also an attractive solution for the bank if you know how to wrap it well.
Contact us if you need us to help you if you are facing a repossession
Maria Luisa Castro
