Yes, because under Spanish law a mortgage debt is personal and you as an individual are liable for the entire loan. If you sell your property for less than your mortgage debt, the bank is entitled to put a charge on your other assets to cover the outstanding amount.
For example, if you have a mortgage loan of €200,000 and sell your property for €180,000, you still owe the bank €20,000. Spanish banks can (and do) put charges on other assets you own and these may include your home.
When Costa Luz Lawyers negotiates with a bank on a client’s behalf, we always ensure that the final agreement includes the complete cancellation (write-off) of the mortgage debt.
This guarantees that the bank cannot go after any of your other assets in Spain or elsewhere.