Repossession cases heard by Marbella courts have increased eightfold within the space of a year and this increasing trend is expected to continue.
The majority of cases involve non-residents who bought properties in the area either as a holiday home or for investment purposes.
The problem is exacerbated by the fact that many bought these properties at inflated prices and with the downturn in the property market it is virtually impossible to sell at a price sufficient to pay the costs of sale and clear all outstanding debts on the property.
Also Spanish mortgage deeds contain extremely harsh clauses which apply once the borrower is in default or in arrears and the amount outstanding is increased significantly with penalty interest charges and extravagant legal fees.
Anyone with difficulty meeting monthly mortgage payments should contact their bank or solicitor immediately to discuss options available.
