More of 4,000 families have taken measures approved by the Government to protect mortgage debtors and alleviate the eviction drama, as announced today in Congress by the Minister of Economy and Competitiveness, Luis de Guindos. The Code of Good Practice has allowed more than 600 payment dates and almost 1,700 debt restructuring; 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 put in place in the middle of last year with the aim of protecting the 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 he acknowledges from his handwriting that the mortgage contract has understood; Delay interest has been limited to three times the legal interest of the money; the ability of the credit institution to claim fees from the debtor has been limited until there have been three non-payments; and financial prudence measures have been introduced to avoid irresponsible over-indebtedness.
Since the launch in April of last year of the Code of Good Practices (CBP) – to which 97 financial entities have joined, almost all of which have mortgage activity in Spain – until the end of September, 9,861 have been received customer requests, of which 2,301 have been closed with improvements in favor of mortgaged. 1,684 debt restructuring has been signed – with extensions of the terms or reduction of the installments, for example – that allow debtors to maintain their home and adjust payments to their income level. They have also agreed 6 withdrawals of a part of the due and 611 dations in payment, so that the debtor delivers the house to settle the outstanding debt and is free of charges.
In 581 cases there was a withdrawal of the process by the client, without precise causes and in 4,749 processes the requests were denied because the applicants did not meet the required requirements (income levels, family situation …). The accession of the entities to the CBP was voluntary but, once made, 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 in 270 cases the contracts have already been signed. This Fund allows those families who have lost their home as a result of an eviction and are in a situation of special vulnerability to request a home with a rental price (between 150 and 400 euros per month).
Additionally, financial institutions have paralyzed more than 1,500 launches (the last phase of eviction, the abandonment of housing) in direct application of the measures approved by the Government.
