Legal tip 578. A good proposal for mortgage debtor rescue
Friday, August 26, 2011 @ 10:02 AM
Adicae, an organization for Banks, Saving Banks and Insurance Consumers in Spain has brought to Zapatero a draft Royal Decree which ask for stopping of judicial procedures for repossessions. It is directed to all debtors under a determined level of financial or economic need.
It is estimated that around 400k repossessions are being currently performed in Spain. According to Adicae, previous measures established by the Government for these same aims have not been used. The ICO fund which was reserved for the measure has just been used in a 0, 08%. They propose this measure to be paid by Official funds such as ICO and FROB ( Banks Correction Fund)
The proposal suggests the aid to be implemented for mortgage debtors with loans of 200k to 300k Euros being used for the buying of habitual dwelling. Timeframes are of 3 years extendable up to five years if there are real possibilities of economic recuperation and meeting of payments.
The applier should have had 3 or more unpaid mortgage installments and reasons for unpayment need to be linked to unemployment, workhours reduction, long term illness or sustaining of dependant persons.
Adicae is also suggesting the aid to be implemented to those whose judicial procedure has already started.
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