Legal tip 437. Navarra Appeal Court says Banks have no rights...
Monday, January 24, 2011 @ 4:27 PM
Navarra Appeal Court has decided that Banks that keep a house in a foreclosure proceeding, whatever the value of the debt and of the house, the Bank will have no rights to go against other assets of the debtor for any remaining amount.
Therefore the debt which is guaranteed with a estate is limited to the value of the property itself. Similar decissions can be found in the Provintial appeal Courts of Baleares and Cadiz.
I agree with some Consumers specialists that this understanding of mortgage debts and forecloseures is not technically correct under pure legal terms, but this is said when talking of a scenario where prices followed a normal growing evolution.
The current scenario in Spain where value of houses and lending availability was so rapidly and artificially inflated by Financial Institutions, make this decission the most adjusted to Justice as Law needs to be applied taking into consideration the social reality of the time when they are applied.
Adjustment to reality for the protection of the most damaged parties in this financial and real estate bubble and subsequent burst: persons, consumers
It is good!
This below is an image of the Court decission front page
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Toro de cuerda in Grazalema by Paco Ramírez at Facebook