"Created in 1988 BBS Abogados Asociados Asesores Legales y Tributarios specializes in all the fields that make up the law of the company."
Reverse Mortgage Lawyers
"The Reverse Mortgage has returned to the market with more force than ever, and it is expected that during 2019 more than 300 Reverse Mortgages will be formalized in Spain."
The Reverse Mortgage is a means of financing widely used in European countries. During 2017 only in the United Kingdom more than 37,000 Reverse Mortgages were marketed, in Sweden 1,150 and in Italy more than 500.
Financial entities intend to expand the success of this product and encourage its contracting in Spain.
It is a credit or loan guaranteed with a mortgage that falls on the habitual residence, granted to people over 65 years of age or affected by severe dependency, or great dependency, its repayment not being required until the moment of death. In this case, the client does not go to the entity to request a loan to acquire a home, but is already a homeowner and offers it to the entity as collateral for the loan.
The owner receives from the bank an amount of money in exchange for the apartment (usually in the form of monthly rent). The advantage is that you can continue to use it until your death and at no time do you lose ownership of the property.
Once the mortgage debtor has died, with a reverse mortgage, it is up to the heirs to settle the situation with the credit institution. They may choose to recover the home by canceling the mortgage loan or in the event that the heirs do not want, or cannot, cancel the mortgage loan, the credit institution may execute the mortgage and thus compensate for the overdue debts, with their interests.
In any case, we recommend receiving correct external advice, to avoid contracting this product when it could not benefit us.
Contact one of our bank malpractice lawyers. At BBS Abogados we can help you recover your investment, consult one of our expert lawyers.