How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Daily Brief - Friday 11 July 2014
- Things that have annoyed me this week
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Pensioners 'misled' by Co-op Bank
- UK Inflation no problem for Governor Carney
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
Spain proposes measures to prevent home evictions
With a million Spaniards struggling to pay their home loans, Spain proposed measures on Friday aimed at preventing forced evictions of homeowners who can no longer pay their mortgages.
The government put forward a code of good practice for banks, asking lenders to refinance mortgages for those unable to pay and forgive debt when the house is returned to the bank in some cases.
Evictions, many involving the disabled and aged, have drawn mounting protests and media coverage around Spain and have increased in number as a brutally high unemployment rate of 23% means more people are in arrears.
Around 200 families a day are thrown out of their houses, according to victim support groups.
Under Spanish law, homeowners cannot hand the house keys back to the mortgage provider and cancel the debt. They remain liable for the outstanding debt if the proceeds from the sale of the house do not cover the mortgage.
This means many unemployed Spaniards not only lose their homes, but remain heavily indebted.
Critics said the proposals were of limited use if there was no obligation on the banks to follow them.
"All measures that propose an 'ethical code' or 'good practice' that banks can choose whether to follow or not are an insult to the millions of people affected by mortgage fraud," said victims support group PAH.
The government wants banks to forgive mortgage debt for properties worth less than 200,000 euros and where all members of the family are unemployed.
In other cases, it proposes banks refinance by measures such as extending the term of the mortgage to 40 years to lessen monthly payments.
Banks are already carrying out such measures in a country where the rate of home ownership is higher than in Britain or the United States and where more than 5 million are out of work.
The value of mortgage debt doubled in the five years to 2009 after low euro zone interest rates fuelled a borrowing splurge and a subsequent housing boom.
Property prices have fallen 19% since their peak in Q1 of 2008.
Latest News & Stories
- Spain congratulates new UK FM and calls for "Dialogue on Gibraltar"
- Could a Scottish Yes vote derail Spain's fragile recovery?
- Spain's Swiftair says lost contact with plane en route to Algiers
- Spain unemployment falls to lowest in 2 years
- Repsol to start searching for oil off Canary Islands coast by end of year
- eBay's StubHub sting ringleader detained in Spain
- More than 1,000 would-be migrants attempt Melilla fence jump
- Vodafone, Orange update FTTH agreement following Ono deal
- Iberdrola Profit Drops as Spain Renewable Subsidy Cuts Hit
- Bank of Spain Says Growth Accelerated in Q2
- Tips When Selling Your Property In Spain
- The AIPP's top 10 of 'what not to do' when buying a property in Spain
- The main differences between a Spanish and UK Mortgage
- When you can’t pay the Mortgage