New mortgage and repossession law approved
Thursday, May 16, 2013 @ 9:48 AM
JUDGES can now prevent mortgage lenders from repossessing properties where 'abusive' clauses are included in the loan contract, and grant a two-year stay of grace on repossession for homeowners considered to be 'especially vulnerable'.
The new mortgage and repossession law – which came into force yesterday (Wednesday) after being approved in Parliament a week previously – limits interest rate hikes on repayments made as a penalty for defaulting on a monthly quota, and also forces banks to set a minimum reserve when auctioning off properties they have already taken back from their owners.
Read more at thinkSPAIN.com