{"id":245,"date":"2013-06-11T11:34:09","date_gmt":"2013-06-11T11:34:09","guid":{"rendered":"http:\/\/decotta.wpsine-dev.com\/spains-new-mortgage-law-helping-home-owners-in-arrears\/"},"modified":"2013-06-11T11:34:09","modified_gmt":"2013-06-11T11:34:09","slug":"spains-new-mortgage-law-helping-home-owners-in-arrears","status":"publish","type":"post","link":"https:\/\/decottalaw.com\/es\/spains-new-mortgage-law-helping-home-owners-in-arrears\/","title":{"rendered":"Spain\u2019s New Mortgage Law \u2013 Helping home owners in arrears"},"content":{"rendered":"

The
\neconomic crisis has hit Spain particularly hard and the subsequent high
\nunemployment and economic hardship in this country has led to record levels of
\nmortgage arrears and evictions.<\/p>\n

The recent Law 1\/2013 of May 14, for mortgage holders, is intended to respond
\nto the growing demand to help home owners that are encountering issues with
\ntheir repayments, and those that might be facing possible eviction.<\/p>\n

The new law
\nis complex but it is fair to say that it goes someway to reversing the recent trend
\nin evictions that have led to tragic suicides and instead begins to help home
\nowners find a solution with their lenders that means they can stay in their
\nhomes.<\/p>\n

For example, the new law offers the potential to suspend immediately and for a
\nperiod of up to two years evictions in cases in which the creditor (the bank)
\nis awarded the residence of the debtor.<\/p>\n

This exceptional measure in reality refers to owners that are at risk of social
\nexclusion. In order for home owners to take advantage of this protection, they
\nneed to meet a number of criteria. For example, these borrowers even in
\nnegative equity, would need to continue to make some payment based on a minimum
\ninterest rate.<\/p>\n

In addition, this revised law means:<\/p>\n

\u2022        The law establishes a limitation
\nfor setting default interest, which may not exceed three times the legal
\ninterest and may only accrue on the outstanding capital. It prohibits the
\ncapitalisation of interest on arrears.<\/p>\n

\u2022        In the case of extrajudicial sale
\nof the mortgaged property before a Notary, the sale must appear in the official
\ngazette, so genuine bidders can make offers<\/p>\n

\u2022        If it is considered in a court
\nthat the borrowers are being treated unfairly by their lender, the court will
\nbring both parties to a hearing:<\/p>\n

\u2022        Costs are limited to 5% of the
\nmortgage in arrears<\/p>\n

\u2022        The home owner is now liable for
\nno more than 50% of the debt of the mortgage<\/p>\n

\u2022 For those wishing to bid for a property in arrears, the deposit is reduced
\nfrom by 20% to 5%.<\/p>\n

\u2022 Once the auction is held and approved, the winning bidder has 40 days to
\ndeposit the rest of the price (previously 20).<\/p>\n

\u2022 If there are no bidders at the auction, at least 70% of the value of the
\nmortgage must be covered where it is a primary residence<\/p>\n

\n\u2022 The type of auction may not be less than 75% of the appraised value to be
\ncontained in the articles of incorporation of the mortgage loan.<\/p>\n

\u2022 The bank cannot foreclose unless the mortgage is at least 3 months in arrears<\/p>\n

These
\nmeasures are intended to make it fairer for the home owner to recover their
\nsituation in a time of crisis.<\/p>\n

It also
\ngives home owners the right to negotiate with their bank to find a sustainable
\nsolution for their mortgage debt. The options for borrowers have been extended
\nso that mortgage holders have the right to live in the property for two years,
\nand pay 3% of the interest. <\/p>\n

\nThese new measures are not applicable when there is an ongoing foreclosure
\nproceeding and an auction date has already been agreed.<\/p>\n

For full
\ndetails of the new mortgage law and how home owners can protect their rights,
\nplease contact De Cotta Law.<\/p>\n

De
\nCotta Law (De Cotta McKenna y Santaf\u00e9)<\/p>\n

Head
\nOffice Spain (Mijas):
\nCentro Comercial Valdepinos 1 y 3\u00aa
\nUrb. Calypso
\n29649 Mijas Costa (M\u00e1laga)<\/p>\n

Tel.: +34 952 931 781
\nFax: +34 952 933 547<\/p>\n

\nE-mail: mijas@decottalaw.net<\/a> <\/a><\/p>\n

www.decottalaw.com<\/a><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The economic crisis has hit Spain particularly hard and the subsequent high unemployment and economic hardship in this country has led to record levels of mortgage arrears and evictions. The recent Law 1\/2013 of May 14, for mortgage holders, is … Continuado<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23,30],"tags":[],"office-cat":[],"service-cat":[],"yoast_head":"\nSpain\u2019s New Mortgage Law \u2013 Helping home owners in arrears - De Cotta Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/decottalaw.com\/spains-new-mortgage-law-helping-home-owners-in-arrears\/\" \/>\n<meta property=\"og:locale\" content=\"es_ES\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Spain\u2019s New Mortgage Law \u2013 Helping home owners in arrears - De Cotta Law\" \/>\n<meta property=\"og:description\" content=\"The economic crisis has hit Spain particularly hard and the subsequent high unemployment and economic hardship in this country has led to record levels of mortgage arrears and evictions. 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