Minister of Economy to propose property eviction reforms

 

Luis de Guindos, the Minister for the Economy is considering ways to help families who stand to lose their properties through being unable to keep up mortgage repayments, commenting how neither the Government nor the banks benefit by evicting low-income families from their properties.

The Minister has been in contact with lenders to discuss ways in how such action can be minimised, including the suggestion that the courts have the final decision over when to reposess a property, as opposed to the Banks.

de Guindos is expected to discuss his proposals further in parliament tomorrow, which includes the setting of a lower limit of income from which a family who would previously have been threatened with eviction, will now be allowed to keep their property. The proposal now is for Banks to reclaim the outstanding repayments through the courts, and for the final decision to be left with the Judge.

However, If the mortgage lender agrees to change the conditions of the loan then both parties face charges, which the government wishes to see lowered in order to make this route more appealing for the Banks to consider.

The Minsiter is also considering ways in which financial assistance can be offered to families finding themselves in this situation, and commented how the worst thing that can happen to someone is to lose their home.