The law establishes 12 months of non-payment before proceeding with the foreclosure, if the mortgage is in the first half of the term, and 15 if it occurs during the second half. Even so, the later action is taken, the options to save the situation are exhausted and the consequences worsen.
When asking the experts at Housfy Hipotecas about it, the first thing they suggest is to anticipate the situation: "If you wait for the bank to have to call you because you haven't paid for months, they won't be as receptive to negotiating," he warns. David Espiago, director of the banking business of the financial intermediation company.
Acting early opens doors to more options. Namely, if the holder has paid religiously, but difficulties in his economy are coming, he can request public assistance for the mortgage. There are them in almost all regions of the State, with their specific requirements and conditions.
The Agència de l'Habitatge de Catalunya, in particular, offers grants to cover installments of up to €800, due to unforeseeable circumstances, provided there have been no defaults in the 12 months prior to the application.
The Generalitat de Catalunya also makes an advisory service available to the public for people who have difficulties paying their mortgage loan. This could be a free alternative to negotiate first-hand solutions with the bank, which would be the next avenue to consider.
The reality of those who cannot pay their mortgage is, in principle, an unexpected economic episode, as it would be a deregulation of employment.
The most valuable advice will be to sit down to find a solution from a bank branch room, exposing the owner's situation, from humanism and understanding.
The options are multiple and depend on the case and the predisposition of the entity. A deficiency is possible —paying only the amount of interest for a while—, a renegotiation of the agreement that makes the return of the loan viable, or leaving the house in the form of a dation in lieu of payment, sometimes even with the opportunity to live in it in social rental scheme.
There are a few requirements that the owner must meet to be able to access these alternatives, so it will be necessary to analyze the situation of each one with precision and caution.
With interest rate rises, many fear that in the medium term their mortgage payment will become a problem. As the forecasts on the Euribor do not predict real decreases until mid-2024, the Government approved a Royal Decree-law that modifies the Code of Good Practices created in 2012.
Among other points, compensation and commissions are suspended during 2023 to go from variable to fixed rate, in order to encourage change.
From Housfy Hipotecas, they affirm that there are other options to improve the conditions of a loan equally valid and sometimes more efficient, related to the subrogation to another bank or the cancellation of the debt and the opening of a new fixed mortgage.
Those who do not reach a solid agreement with the bank still have a way to go: put the property up for sale and, with the proceeds, pay off the mortgage.
In difficult financial conditions, making the decision to get rid of your home brings with it a string of deep emotions that are tiring to digest. But the reality is that cleaning up the finances may be more convenient than accumulating delays in payments and entering a vicious circle that is even more laborious to overcome.
One of the advantages of selling the property is the possibility of liquidating the asset beyond the debt. This happens especially when, anticipating the situation, the owner can sell the revalued property without haste for a price higher than the outstanding debt. Waiting until the last moment, otherwise, can lead to a bad sale.
If, even so, the owner has an urgent need to sell his apartment, there are 'iBuyer' services that buy real estate in record time. With them, the owner will often receive an offer within 48 hours at the latest and be able to liquidate his asset in seven days.
