The moratorium measures are in force since 3rd of December 2008:
Applicable to resident foreigners according to Provision 13 of Foreigners Act
Royal Decree 1975/2008.
CHAPTER II : Moratorium on the payment of mortgage loans
Article 3. Mortgage loans.
Debtors of mortgage loans made prior to September 1st of 2008, for an amount inferior to 170,000 euros and only for habitual domicile purchases will be eligible for public financial support measures which are explained in this Chapter under the terms and the requirements provided for them herein.
In every case, the application of these measures will require the prior agreement between the interested party and the lending bank or company.
By the before mentioned agreement, the beneficiaries will accept the terms and legal effects of financial measures exposed in this chapter, and in particular ,those obligations towards the State derived from this.
Article 4. Purpose of the financial measures.
Financial support measures above mentioned will cover up a maximum of 50 per cent of the monthly mortgage loan instalments bettween January 1 2009 and December 31 2010, with a maximum of 500 euros per month.
In the case of multiple debtors of the same mortgage loan, the limit of 50 per cent of the monthly instalment and 500 euros a month will not be exceeded, even if more than one of them meet the requirements to be beneficial of the measure.
These amounts will be compansated from January 1st of 2011 through their distributed payment during the remaining months of the mortgage loan devolution period with a maximum of 10 years.
Article 5. Eligibility for the measure.
1. Debtors of mortgage loans referred to in Article 3 of this real decree need to meet any of the following situations prior to January 1st 2010 in order to be beneficiaries of the measures outlined in this chapter:
a) To be an employee worker under unemployment condition at least during the three months which are immediately preceding the application, and to be entitled to contributory or non-contributory unemployment benefits.
b) To be a self-employed person who has been forced to cease its work activity and has remained in that situation for a minimum period of three months.
c) To be a self-employed person who attests full income inferior to three times the monthly Public Indicator of Multiple Effect Income ( IPREM) for at least three months.
d) Being the holder of a widow's pension due to death occurred after the contracting of the loan mortgage, and in any case, at a later date to Sept. 1st, 2008.
2. In any case, it will be a prerequisite for eligibility to this aid that the debtor is not in arrears.
Article 6. Accreditation of conditions.
1. The concurrence of the conditions specified in Article 5 of this Royal Decree will be proved before the loan Bank or company through the following documents, as appropriate:
a) In case of legal situation of unemployment, by the corresponding certificate issued by the National Service of Employment ( INEM).
b) In case of cessation of activity of the self-employed person, through the corresponding certificate issued by the Taxes National Department (AEAT) on the basis of the declaration of cessation of activity made by the affected person.
c) In case of self- employed persons with income inferior to three times the monthly indicator of Public Income Multiple Effect through the certificate of declaration under liability made by the affected before the Taxes National Department ( AEAT).
d) In the case of widow pensioner, by certificate issued by the Social Security Office. (INSS)
2. False statements of mentioned elebibility conditions will produce the immediate loss of rights provided in this Royal Decree.
By Maria L. de Castro
web@costaluzlawyers.es
www.costaluzlawyers.es
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