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Spain Real Estate News

What's really happening in the real estate world in Spain? The EOS Team are going to be keeping you up to date with everything that's happening from a market perspective.

Spanish Government Prods Banks to Modify Mortgages
10 March 2012 @ 10:49

Spanish banks that voluntarily sign on to a newly approved code of good practices will be required to restructure the mortgage debts of certain distressed borrowers and is some extreme cases repossess properties and write off the debt.

Prime Minister Mariano Rajoy’s conservative administration on Friday approved a decree law containing the new guidelines, the deputy premier, Soraya Saenz de Santamaria, told reporters at a press conference.

She said the new rules seek to “mitigate the dramatic plight of more than 1.5 million families that have all their members out of work” and are on the road to foreclosure and eviction due to a lack of income to cover their mortgage payments.

The new measures will serve as a buffer for families “at risk of social exclusion,” the deputy prime minister said.

She estimated that a total of 300,000 foreclosures have occurred in Spain since the onset of the financial crisis.

For families to qualify for relief, the affected home must be their only residence, all the members must be unemployed and mortgage payments must represent at least 60 percent of household income.

Read more at laht.com



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Suffering said:
17 March 2012 @ 22:24

I should have added my other comment to this page. Again, this relief does not cover those with a guarantor so therefore most Spanish youngsters who have a guarantor are still suffering. It's the immigrants who can take advantage of handing the keys back and then go home. Those here will be hounded for ever more. The banks should be made to stand up to their responsibilities. THEY overvalued properties to get a few extra grands commission in their pockets. They played with the figures so now their companies should take the hit. Why should the developers walk away with 'nothing' when they've hidden their millions in their wives names or in Brazil etc. Corrupt Scumbags.

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