Dacion en pago (discharge all or part of a debt) this is the preferred option but not always available. The normal route a bank takes against debtors for whom all avenues have been exhausted is legal action to embargo your property. This will not leave you debt free and the bank is free to auction your property for up to fifty percent below its actual value. This in effect will leave you with the balance of the debt. At this stage the amount owed will have raised substantially due to legal costs. Unable to pay the balance, the courts will give the bank the right to embargo your bank accounts, your salaries and any other asset you own including the family car as payment towards the debt. To date we have no news of any debtors having to relinquish any asset such as a property in their home country but lawyers are pursuing this action in the hope of setting a precedent. Do not ignore the banks demands but seek advice to attempt to obtain dacion en pago. This is not a route that the banks relish as they will themselves have to meet your debt. With property values at an all time low, this option is difficult but not impossible to achieve.