Flat reposessed...still have to pay?????

[kloofnek]

What do you think about ...in Spain ,if one`s home is reposessed(or a car),one has to continue paying the mortgage (or finance) even though one does not have it anymore....surely this cannot be just or fair!!!

Can anyone throw some light on this ridiculous situation.....

[ubasses]

Do not know anything about Spain but if you have your house repossessed here in UK and the sale doesn't cover the loan, you have to pay of the outstanding amount.

[Graham-W]

If the sale price of the repossessed flat ( plus expenses) doesn't cover the value of the loan, who do you expect to pay the loan off?

[kloofnek]

yes,that makes sense to me...whether this is what it is in Spain and not been explained clearly.????

[Tinker,Wales]

A lot is going to depend on circumstances (and I know nothing of Spanish law)
If, in the UK, you bought a car with finance, there are two separate contracts, one for the purchase of the car, and one with the finance company. If the finance company repossess the car then it is to cover the outstanding debt, and as long as the car is worth more than the debt then you should be able to stop paying. But if the car (Due to accidental damage etc.,) is worth less than the outstanding debt then you would still owe the finance company some money.
If the car were repossessed by the police, as the seller didn't actually own the car (a 'ringer' or whatever) then you would have a claim against the person who sold you the car (if you can find them) but you would still have a debt to the finance company.

I don't know how this links to your Spanish probm, I'm just pointing out that something similar could happen in the UK.

[kloofnek]

Thank you Tinker,Wales,very well explained.I don`t live in Spain now but my daughter does and it was she who told me about this...not her problem,just in general conversation.
I think it is probably like you all say it is in the UK.