Spanish Business News

MADRID — Spain's government approved measures Friday to help the soaring number of homeowners, many jobless, who cannot pay their mortgages.

The government has since mid-May faced demonstrations across the country from "indignant" protesters who have won broad public support in decrying the state of the economy and corruption.

Among their demands are changes to Spain's strict mortgage foreclosure laws.

Under Spanish law, banks have the right to auction houses in a foreclosure. If no buyers appear, as is often the case, the bank can take ownership of the house for 50 percent of its value.

Deputy Prime Minister Alfredo Perez Rubalcaba said this percentage would be raised to 60 percent, which will leave a defaulter with a smaller debt to pay off.

"Nobody will be able to take hold of the house of anyone for less than 60 percent of its value," he told a news conference after a weekly cabinet meeting where the measure was approved.

The government will also raise the amount of a borrower's monthly income that can not be seized by a bank in case of default on a home loan to 961 euros ($1,390) from 641 euros, Rubalcaba said.

Read the full article at AFP/Google