How does a Dacin en Pago Work?

For the lender to accept it two things are required.1.The property must not be in negative equity.
2.The lender must not have started a repossession
procedure against the property.
The outline of how it works is as follows:
1.The borrower must be on time with the repayments
as well as with the Community fees and local taxes.
The latter can actually be negotiated with the lender.
2.The borrower approaches the lender and proposes
this procedure.
3.The lender will require the property to be
reappraised. You will be expected by your lender to
pay this in advance. On average it's approximately
350.
4.If on average the new valuation of the property
covers the outstanding mortgage loan plus 13% of the
associated legal expenses the lender will accept to
take the possession of the apartment, cancelling your
debits and will waive taking legal action both in Spain
and abroad in your home country. As a rule-of-thumb

the cushion of equity should amount to at least 20% of

the property value.
5.The day of signing the Deed at the Notary, the
borrower will surrender the keys, and leave the
property clear of furniture and tenants.
6.The property will now be lodged under the lenders
name.