2. Negotiation
The Bank will seek to exhaust all possibilities before falling in the implementation estate (the process of seizure and sale of the mortgaged property to recover part or all of the debt). In 2007 the late payment was less than 0.70%, since before a property, the preferred bank refinancing (two years now and free one-governmental agreement) or a grace period (no monthly payments).

3. The execution
If no agreement is reached between client and bank seizes the property and goes to auction. This process can take up to 24 months, a period in which the debtor has the grace to live in the house. The property may or may not be awarded to a bidder. If not, becomes the property of the bank.

4. Until the very end
By signing the contract, the customer agrees to pay the full debt plus interest by making it present and future assets, and his endorsement. So if (as most of the time) the cost of the house does not cover the loan plus interest and court costs, the bank can seize all assets and income of the debtor and its guarantee to cover the debt.

So far this year, the provision of mortgages has increased by only 4% over last year, which was an increase of almost 15% in real estate credit market. The reasons? The worsening of the conditions to qualify as mortgages, mortgages to more expensive compared to home prices (credit is expensive and the houses are overvalued) due to the relentless rush of the Euribor (now between 5.3 and 5.4 %).

The decline also has its reasons for the low liquidity of the financial system, which increases risk management. That is, investors are increasingly demanding better guarantees of profitability or pull out their capital in the system.

The Spanish Mortgage Association had placed on a 6% market growth this year, but even their most pessimistic forecasts have been fulfilled.

Why?

The Euribor will continue high. Despite a drop in interbank lending rates, the rate for calculating interest which are subject to mortgages, continue to rise, and it is believed that, at least for the remainder of the year, not lower than 5%. Without a restructuring of confidence in the financial system, money will remain expensive.

The banking crisis will peak in 2009. All done in macroeconomics takes nine months to affect the real economy. The credit crunch (due to which banks raising interest capitalized on all types of claims) may extend to the last part of 2009 and even 2010. Experts believe that inflation will decline only until 2011. Entoncs Only banks may be a liquid that will lower the price of mortgages.

The prices of flats will fall in two years. Although consumption has fallen by more than 40%, real estate agents refuse to lower prices. However, the contraction of its business, financial taxes, expenses and wear of the buildings, require a massive drop in prices could be around the 3rd% next year, and 50% for those same houses, apartments 3 years.

This is a postponement, not debt forgiveness: The deferred amount will begin to pay into an extension of the original term of the mortgage, without falling into the figure of refinancing or its commissions, fees or interest, in an extension up to ten years, effective from January 2011.

A measure that benefits more than half a million unemployed and their families. If by the deadline extension, still do not allow the family to pay their debt, the government will through the Institute of Creditors Official (ICO). Thus, the measure does not become another reason for the banking crisis.

It has also approved a measure to extend the deadline for requiring purchase of one in the home-savings accounts, for four years.

The problem for renegotiating a mortgage: we must spend money in the process, sealed, deeds and other documents.

The solution:
A procedure that either led, only requires a contract between the bank and the customer, without great expense or delay, provided that does not want a change of variable to fixed rate.

What is novation?
This is essentially a contract where the bank and the mortgage holder settle the new bases of a mortgage payment.

What can I change through the novation?

1. The mortgage interest
2. The amount of the mortgage (if necessary add more capital)
3. The repayment period (extending the life of it to reduce monthly payments)
4. The ownership of the mortgage (when we have to remove one of the owners, through death or separation)

Can I change my variable rate mortgage to fixed by novation?
Yes, but will need to pay the processing of a new writing, which in any case are much lower than those of subrogation.

One reason to avoid change of bank in the case of mortgages is commissions and administrative costs that the process entails. For other than an impediment, Barclays runs with them, provided that an amount not exceeding $ 3,000.

If your mortgage has a minimum life of six months, you can opt for a mortgage with an interest of Euribor + 0.35, a maximum of 35 years and a ceiling of 75% of the value of your home. It takes a life insurance Barclays Life and Pensions.

To avoid the troubles of the Euribor is an annual product review, which also offers the possibility to maintain the fixed rate increases to the index.

An excellent opportunity help find more favorable terms for your mortgage or give a tug to pay more to run.

1. Beneficiaries

Although raised with the unemployed in mind, only those with more than three months without work can be ascribed to her, which leaves out most of the workers displaced by the crisis at this time (the bulk of unemployment has been generated in January).

2. The amount

The moratorium only held mortgages below the 170,000 euros, which leaves out most of the people who might have trouble paying

3. The discount

It is important to note that the moratorium is not such but merely a postponement of debt, and that the amounts deducted from the monthly installments) shall not exceed EUR 500 and b) will have to pay from 2011, which is not a substantial discount and yes, however, increased the life of the mortgage

4. Banks

Not all banks have joined the initiative, nor all those who have announced they will have signed the agreement with ICO. Only 35 of the 60 banks that have been said participant has concluded the agreement and provide the benefit. The rest is an enigma …

5. Interest

Although advertised as a free benefit, not the case: the postponement of debt will have an interest of 0.8% ICO, although may prematurely cancel the deferred amounts.

With all this, the value of the initiative remains to be seen.

1. Labor Helplessness
Be subject to a monthly payment inevitable, the mortgage is required to maintain employment. A situation that gives companies a weapon to be submissive and perform abusive practices.

2. Anchored
The new economy of globalization; often ironically bless some regions while punishing others. Before a local economic downturn, tied to their property, the mortgage can not migrate in search of better opportunities. Or do it after a costly and complex sale process.

3. Unhappy
Leisure is an essential part of life, but the cost entertainment. A mortgage consumes more than the third of family income. Without extra money, no entertainment, leisure, and without the pressures of working life intolerable, this becomes less productivity and participation at work.

4. Extra costs
Any activity in the life of the mortgaged means fuel costs and time, unable to separate from its future ownership: transportation to work (before the housing boom, most of the new properties are on the outskirts of urban centers), the school, doctor …

Rent or buy? The decreases in interest rates and housing prices may be misleading. The crisis will not last forever and better macroeconomic and price can translate into higher rates. Moreover, one of the lines to cut down the glut of homes is the momentum of the car and the promotion of the modality of hire-purchase. Any alternative is better than bondage to the dream of owner status to the cost of labor unhappiness.

1. Do not fall into the non-payment
Even losing a monthly debit can make us fall in lists and other files from defaulters, and not only deny us any form of credit are also subject to foreclosure. For any sign of economic weakness, should be renegotiated.

2. Do not fear the bank
The financial institution does not want more property, but recoup their investment. In the table of negotiations, the bank usually is flexible before falling in the execution. The problem: we must be alert to the fine print and clauses dressed up as concessions. At this time, moreover, with the Euribor and downs of taxes is possible to achieve a profitable even under the most desperate situations.

3. Be careful with pricing
The market is depressed, and appraisers give the home prices up to 40% below 2008. Each bank is working with appraisers, but we must try to be accepted the certified appraisal of the bank in Spain, which favors the customer. Appraisals are valid for only 3 months, and go down.

4. A client before a delinquent
We must come to negotiations with the certainty that the bank does not want another more delinquent, but a customer who charge interest.

What requirements must I meet to apply for a mortgage?
Income: the rest of the relationship between what you earn (your actual income and taxable) and the total amount paid in respect of accumulated debts. Is measured monthly, and describes positive mind (from less than the amount that you leave your monthly debts, you are less attractive for the bank as a client).

Equity: Loan to value, a factor which measures the risk to the bank to lend money to purchase a property, and involves some fun facts:
The value of the home you’re buying (selling price) is not the same as its actual price (valuation) is possible through a mortgage to buy a house priced at 120,000 euros which is only valued at 90,000. The Loan to Value is measured by dividing the actual price of housing for the requested amount of the mortgage: a mortgage of 80,000 euros to buy a 120,000 house valued at 100,000, will have an 80% LTV, the higher the percentage, the greater the risk that the bank runs.
The devaluation of the real price of housing in Spain has meant that many mortgages have an LTV of more than 100%. That is, homes whose sale does not cover the loan amount.

Credit: The character of your history of credit from consulting, patterns of debtors and other sources that use banks