posted on Dec, 10 2008 @ 09:40 AM
OK here's one for you and it's nothing to do with affordability. I'd be interested in any free advice anyone can give.
March 2004 - bought house valued at 147,500 and spent 2 years renovating.
March 2006 - new valuation at 211,000, increased buildings insurance accordingly.
November 2006 - Storm that damaged the roof to the point that we had leaks over probably 1/2 the roof. Part of one plasterboard ceiling came down
when some roof tiles fell on it - luckily no-one was hurt and the whole mess landed on the stairs. Insurance sent a surveyor who told us that the
roof was badly damaged and needed urgent repairs/replacing. He was recommending insurance company pay out quickly, gave us his business card and even
wrote his private mobile on it.
We got quotes then a letter from insurance to say they won't pay anything as the buildings insurance doesn't include the roof?! Called their
surveyor who wouldn't give a copy of his report because he relies on work from the insurance company but he did confirm verbally that he'd told them
the roof needed repairs/replacing.
Got a lawyer who eventually managed to get 700 (yes seven hundred) from the insurance company to repaint the walls. Insurance claimed the surveyors
report said only a few tiles needed replacing and the rest of the roof was in good order. We tried to argue that 3 builders had said the roof needed
replacing but got no joy.
December 2007 the roof of our house collapsed in a rain storm and luckily we were away visiting family for Christmas and New Year. Our neighbour had
a key, to feed the cats, and took photos and emailed to us. We put in an insurance claim and they sent a surveyor out and then they wrote and told us
that the they won't pay anything towards the roof because we hadn't maintained it.
So, in 2006 they said only a few tiles needed replacing but in 2007 it's our fault the roof fell in because we hadn't maintained it. Who maintains
a roof unless you know there's a problem? Since replacing the few tiles we hadn't had any leaks or problems. Some neighbours lost their roofs in
September 2007 after a storm and ours held up fine.
We had our own surveyor look at the roof and he said that the roof was probably seriously damaged in 2006 and then the September storm probably
weakened the roof even more and the December storm just finished it off.
Our options.
1. Pay a lawyer who wants 5000 euros up front to take it to court and says we have a 70% chance of winning. (tried 3 lawyers - all say the same)
2. Pay for a new roof ourselves - not sure how we can do that as the bank have said no to a loan and we don't have 20,000.
3. Walk away and give the house back to the bank. We owe around 134,00 and by the time we spend 20k on it it will bring the total to 154,000.
There's another house in our street, totally renovated, for sale at just 117,500. Another for reform is for sale at 80,000 (needs the same amount of
work as ours).
The sums just don't add up to keep the house but it was once our home.
We've spent the past 12 months renting because the house isn't safe and doesn't have a roof. We've also been paying the mortgage payments
somehow. Now the bank have taken another year's insurance policy from our account - for the same insurance that won't pay! I should add that the
insurance company is part of the bank.
That was my final straw and I decided it's best to give the house back. This bank are just ripping us off big time and they know we can't afford to
fix the house or take their insurance company to court.
Now I've calmed down a bit and I would like to keep the house, if at all possible but we cannot continue paying rent plus a mortgage on a house we
can't even live in. If we could get the house done then we could move back in but the bank won't lend us the money, the insurance won't pay and we
don't have a spare 20,000 hanging around.
Lawyer says that if we give the house back it will be full and final settlement and we won't have to pay any shortfall. Although there are 2 cheaper
houses, in our street, we won't be able to buy one because we'll have bad credit.
Please don't suggest speaking to a consumer place/ombudsman/etc as this is Spain and we're told there isn't anywhere we can get help from an
independent source, except to pay our own lawyer.
So there you go. Not everyone is getting foreclosed for overstretching themselves. Some of us have very affordable mortgages (if we didn't also
need to pay rent) and had buildings insurance too. If the insurance company and bank weren't screwing us then we'd have spent this year happily
living in our home and paying the mortgage comfortable.
What would you do? Any Spanish speaking lawyers that will take the case on a no win, no fee? Any advice from anyone? I'm not trying to hijack the
thread but it is about how to help stop foreclosure.