Good principles and orientation in our opinion but no strong and enforceable enough in lack of correspondence to the situation many families have in Spain these days. Situation that, as we all know, was clearly promoted, in a good extent, by the excess of irresponsable credit by Banks.
The Congress approved yesterday with the abstention of PP, a motion urging the government to make the "necessary legislative changes" to "perfect" mortgage regulation and "limit" the "social effects" resulting from foreclosures.
Dation as payment
The motion does not provide specifically for the "dation as payment" ( delivering of the house in payment of debt) as an enforcebale solution. Even though this possibility of payment by cession of assets is provided by provision 1175 of our Civil Code, limits are to the value of the house and the Bank can or cannot accept the full closure of the mortgage debt. It really depends on the economic moment for the Bank to be more or less open to this. No rights to over financed Consumers here: the typical story.
During the last couple of years we have witnessed different moments in terms of Banks´eagerness to take houses in payment of debts. Negotiation possibilities mainly depends on specific characteristics of the house, the debt, the debtor, possible purchasers... so a good try by a good lawyer is always advisable.
Socialists have expressly committ on the "study" of clauses to be included in mortgage deeds to secure that the obligation is made effective only on the mortgaged property, not reaching the other assets of the debtor. Nothing new as this is already established as a possibility by the Mortgage Act in Spain since 1946. I assume that the government is thinking of adding obligatoriety to this for armonization with other legal orders in Europe.
If this limit is possible for the negotiation of the mortgage, by virtue of autonomy of the will of contract parties, why not to apply it when the mortgage cannot be repaid by any mean? Again.... taking into consideration that many of these mortgage credits were purchased by consumers foolishly driven by the lending voracity of Banks.
Bankrupted families
Participants also discussed on new legislative measures for bankrupted families : transparency of mortgage contracting and of insurances to cover mortgage defaults when unemployment or disability.... Good principles again, all of them mostly covered already by our legal order: too soft statements in our opinion.
Another topic for study and consideration is on the increasing of fixed amounts as unattachable wages, salary, pension...taking into account things like the number of children in the household.
The last point of the motion, refers to encourage mediation between banks and families on missing payments.... nice idea... need to acknowledge it captured my attention this morning. Main wonder of myself: who will be the mediator?
Vejer de la Frontera by Lylycat at Flikcr.com