Repossessed rented property.

[Guanche]

Thought this may be of interest. I have a nephew who rents in Santa Cruz. The other week he received a letter from a bank stating that the flat he was renting had been repossessed and he had to vacate. There was no exact date he had to vacate which left it up in the air but the intimation was ASAP.

Its a long story and not a very savory one, but the family have a lawyer! So off he went to get advice. The advice was it could take up to two years for the bank to get rid of him. So the lawyer suggested he goes to the bank and asks for 'Relocation money' She said €1500 would be a good amount (the wife said €2,000).

Anyway off he trotted to the bank and came back with €1,000! Which was nice

[Janet]

Wow, that is invaluable info, P! 

could you just clarify that the rental contract was a long-term one? And that it was still in term? Would really appreciate the info.

[Guanche]

As I type Janet the wife is speaking to her brother. The nephew (his son) was going to a meeting with the bank and the owner of the property today. The contract was for six months and the cash from the bank was under the agreement that he vacated quickly. As I say I will verify that shortly.

[Janet]

Big news, P, I get a lot of enquiries about this ... I'm posting this if you don't mind.

[Guanche]

All verified. A bank official went round to the flat today and gave him €1,000 cash in return for the keys. One thing I should point out he had been up to date with his rent and could prove it. The contract was for six months. The wife didn't ask how long the contract had to go but we reckon there was at least three months to run. The rent was just under €400 a month all in.

[Janet]

Big news, P, given the enquiries I've been getting lately, and it's a growing issue. Much appreciated. 

[Guanche]

The bank was Santander. Even if there was only a couple of days to run on the contract the bank (we're advised) would pay. Its pay or wait upto two years to get you out. So it's just good buisness by the bank. We just have a feeling they would have paid more. Its not a case of being greedy its a case of 'do unto them before they do it to you' which given the banks history in Spain is fair.

[Perikles]

Its pay or wait upto two years to get you out. So it's just good buisness by the bank.

I wonder whether in that situation it would still have been better in his position to stick it out and stop paying the rent at some point. After 3 months he would have gained more by staying than leaving, at which point they may well have made the same or better offer. 

There is no moral issue here for me - banks screw you for what they can, so given an opportunity I would do the same to them, and enjoy doing it.

[Guanche]

Good point P. But if he stopped paying rent would it have speeded up the eviction process? Plus knowing the Banks they may have pursued him for the unpaid rent at some time in the future?

[Janet]

yes, fast-track eviction now for non-payers ...