The Bank cannot execute further than the mortgaged house

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27 Jan 2011 12:00 AM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

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Legal tip 437. Navarra Appeal Court says Banks have no rights...
24 January 2011 @ 15:27

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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This message was last edited by mariadecastro on 27/01/2011.

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27 Jan 2011 1:28 PM by normansands Star rating in Kent. 1281 posts Send private message

Great news, that would be the ordinary person's understanding anyway

the uk's "reasonable" man interpretation.

Norman



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27 Jan 2011 1:49 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

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Dear Normansands:

Yes, they are great news!

Let´s hope this helps many people. I would love to see many other Appeal Courts ruling this way, one after the other...       

Best regards,

Maria

 



This message was last edited by mariadecastro on 27/01/2011.

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27 Jan 2011 4:11 PM by joanmalaga Star rating in Costa del Sol. 419 posts Send private message

Finally a little hope for some.  From what i read this does not include the legal costs though which I understand as a maximun can be something around 30% of the amount owed.  Is this correct???????

So, does that mean if someone owes €100.000 and it goes to auction and sells for €50.000 that they could still be liable for anything up to €30.000 and therefore their assests in the UK or anywhere else could still be reposessed if they no longer own anything in Spain?

If this is the case than its a very small step and hopefully they will find a way round this at some point soon.

Joan

 





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27 Jan 2011 10:33 PM by Orinoco Star rating in Castilla La Mancha. 141 posts Send private message

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 Joan, if they "find a way around" the legal fees, everyone with negative equity will be handing their keys in at their local branch. What about those who bought to let, or the second and third homeowners? They pushed up prices for the rest of us yet get off scott free because their investment didn´t materialise? Whilst those of us that live here permanently and just wanted a home are stuck with higher banking costs, thanks to the defaults, and higher taxes, as the Gov´t tries to bail the banks out. 

It has to be done on a case by case basis, it´s almost impossible to legislate for. 





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27 Jan 2011 11:13 PM by TechNoApe Star rating in Duquesa, Manilva. 1277 posts Send private message

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"It has to be done on a case by case basis, it´s almost impossible to legislate for."

Agreed!

On the one hand:

This helps many who have been defrauded...

however,

Every man and his goat would be handing back their keys to the banks and walking away  thinking that they are "Scott Free" from any debt, or they felt "can't service the mortgage, won't service the mortgage, hand back the property and won't be chased!".

No!

Much more clarification required on this, otherwise people may have 'false hopes".


 



This message was last edited by TechNoApe on 27/01/2011.

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31 Jan 2011 10:09 AM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

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 It is necessary that the house is kept by the Bank and not by a third party, that´s why I advise to people who is experiencing payment serious difficulties, and after consulting with the Bank for a mortgage extension or any other type of easement, to start pro-actively the " dacion en pago" process for better securement of rights under Civil Code and according to the line of this last Court decission.



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