More of 4,000 families have taken advantage of the measures approved by the Government to protect mortgage debtors and alleviate the drama of evictions, as announced today in Congress by the Minister of Economy and Competitiveness, Luis de Guindos. The Code of Good Practices has allowed more than 600 payments in payment and almost 1,700 debt restructurings; the Social Housing Fund has provided 600 apartments for rent at low prices; and more than 1,500 evictions have been suspended. All these measures were launched in the middle of last year with the aim of protecting groups especially vulnerable to the economic crisis.
The minister explained that this government "is the one that has done the most to protect savers and, in particular, mortgage debtors." In addition to implementing the Code of Good Practices and the Social Housing Fund, transparency has been reinforced, requiring the mortgaged a handwritten expression in which they acknowledge in their own hand and letter that they have understood the mortgage contract; default interest has been limited to three times the legal interest on money; the ability of the credit institution to claim installments from the debtor has been limited until three non-payments have occurred; and financial prudence measures have been introduced to avoid irresponsible over-indebtedness.
Since the launch in April last year of the Code of Good Practices (CBP) –to which 97 financial institutions have joined, practically all of which have mortgage activity in Spain- until the end of September, 9,861 have been received client requests, of which 2,301 have been closed with improvements in favor of the mortgaged. 1,684 debt restructurings have been signed – with extensions of the terms or reduction of the quotas, for example – that allow the debtors to maintain their home and adjust the payments to their income level. There have also been agreed 6 deductions of a part of the due and 611 dations in payment, so that the debtor delivers the house to settle the pending debt and is free of charges.
In 581 cases there was a withdrawal of the process by the client, without specific causes and in 4,749 processes the requests were denied because the applicants did not meet the required requirements (income levels, family situation …). Entities' adherence to CBP was voluntary but, once completed, it is mandatory for a period of two years.
The Social Housing Fund (FSV) has received 1,305 applications since it was activated last March. 615 homes have been awarded, of which contracts have already been signed in 270 cases. This Fund allows those families who have lost their home as a result of eviction and are in a particularly vulnerable situation to apply for a home with an appraised rent (between 150 and 400 euros per month).
Additionally, financial institutions have paralyzed more than 1,500 launches (the last phase of eviction, abandonment of housing) in direct application of the measures approved by the Government.
