In Spain when you sign a mortgage , you do not just respond with the value of the mortgaged property but also with all your future assets in Spain and abroad.

If the bank has your property sold at auction, and the sale does not collect the debt owed they are entitled to pursue you for the outstanding amount even in your home country.

What should we do if we can not, or do not wish to pay our mortgage in Spain? We recommend negotiating with the bank to:

1. Reduce the monthly payments by extending the payment period of the loan, or converting it to to an interest only loan.
2. To negotiate a period in which you make no payments.
3. Sign over the deeds to the property in exchange for them waving all responsibility.

Other than this we recommend trying to sell the property for the price of the mortgage getting the bank to permit the purchaser to take over your mortgage.

Please note that the key is to negotiate with the bank before the loan goes into technical default which happens 90 days after the first non payment of your loan. At this point the bank has to pass your file to their legal department and provision a percentage of the bad loan to offset the potential loss.