But Why Would Anyone do This?

Struggling borrowers decide to hand the keys back to

the bank in order to avoid being repossessed.
Repossessed properties are usually left in negative
equity, meaning you owe more money than what the
property can raise in an auction. If after this you are in
negative equity, the lender can actually pursue you
abroad in your home country for the difference. The
property itself, the collateral, was only guaranteeing
the bank loan.
Following Art. 1911 of the Spanish Civil Code, once
the property has been repossessed, you will be held
personally liable with all your assets, both now and in
the future, for the difference between what you owe
the bank (plus the repossession associated expenses,
lawyers fees, default compounded interests, etc) and
what the property is worth after the full repossession
procedure is over. The same principle applies in the
United Kingdom.
Is this only in theory? Im afraid not. Many defaulting
borrowers have now realized with shock that this is

indeed happening; despite that the lender has

repossessed their Spanish property, they are still
being chased in their home countries or elsewhere for
the outstanding debt.
Therefore, those in lieu of being repossessed should
rather either sell the non-performing mortgage as a
distressed asset (of which there are now many
websites available) or else follow a dacin en pago
procedure if they are unable to find a buyer in time