Life is full of unexpected turns. When you sign mortgageWith , you make a long-term commitment with your financial institution, confident that you can always meet your monthly payments. However, current Euribor and changing economic conditions may give you an unpleasant surprise. For those stuck at the crossroads of mortgage debt, Bank of Spain offers an option that may provide some relief: Settlement.
The economic environment, especially Current Euribor reflects high interest rates. This situation is especially difficult for those who prefer it. mortgages variable interest. The result is a spiral of increasing payments that sometimes becomes unsustainable for the household budget. When faced with the possibility of non-payment and eviction, the sad reality of losing your home and still being in debt emerges.
But here This is an option supported by the Bank of Spain that many people are not aware of. In essence, this is an agreement between the mortgagee and the bank, according to which the mortgagee delivers the house, guaranteeing full payment of the outstanding debt. It’s just extinguishes the mortgagebut also It relieves the debtor from additional responsibilities.
So how exactly does it work? By opting for dación en pago, the debtor can even request that the house be rented for a period of two years, paying a rent equivalent to 3% of the total debt at the time of the dación. Of course, if you do not comply with this lease, a 10% late payment interest will be applied.
Here’s what you need to request a date on payment
However, there are conditions that must be met to claim dación en pago. According to the Bank of Spain, these include:
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Being on the verge of exclusion, that is, facing serious economic difficulties.
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The price of the purchased property does not exceed 250,000 euros.
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It is not possible to restructure the debt.
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The bank decides not to apply debt cancellation.
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In other words, if the enforcement process was initiated by the bank, the tender was not announced.
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No additional expenses for the house.
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Finally, after the request for restructuring of the debt is made or if a restructuring plan already exists, if it is determined that it is impossible to meet the payments, the payment request must be made within 24 months at the latest.
For most people, a mortgage is the largest financial commitment of their lives. However, if you feel that the shadow of the current Euribor and other factors are trapping you, the payment date may be a solution to consider. It is always important to stay informed and know all the options available to face the economic challenges that may arise.