In view of the percentage of separations and divorces that we had last year 2015, according to data from the INE, more than 120.000 couples decided to end their relationship, having bought a house together in the past.
A home that when the separation comes we don't know what to do with it and if we add to that that said home is mortgaged, that's when the headaches come.
One of the first options that we should consider would be to put the house up for sale and with the amount of the sale pay off the mortgage and distribute the profits, in the event that there is anything left, since if the house was bought in the middle of the real estate bubble sometimes the money obtained is not enough to pay off the bank's debt, in these cases you can negotiate with the bank the payment dación, (replacement of debt for housing) taking into account that with the excess of procedures of this type the bank does not agree to said negotiation.
Another option is that one of the parties wants to keep the home, this case being one of the best options since from a tax point of view it is cheaper than selling our part of the home to the other owner of it.
Both options are a form of transmission and we would have to do it before a notary but at a tax level the latter would be more economical.
By extinguishing the condominium, one of the parties would cease to be the owner of the home but would not cease to be the holder of the loan and would continue to have obligations with the bank. At this point, the decision depends on the entity whether or not to remove a holder from the mortgage, and lose one of the mortgage loan guarantees. For this reason, entities refuse to do so, and if they do, they make mortgages more expensive or ask for more guarantors, and today they only agree to this case if the owner who would keep said mortgage is the most solvent of the two and is willing to pay more interest.
Another problem that has been very common is the issue of guarantors who would not cease to be guarantors. in no case even if they were relatives of the other party and they were no longer listed as the owner of the home or as the holder of the loan.
We can help you find the best solution for your case, depending on your financial circumstances and whether you have children in common. We can negotiate with the bank both the modification of the mortgage and the dation in payment. Consult us!
