- More than 45,000 families have benefited from measures to mitigate the effects of the crisis in the field of housing
- 50,852 applications have been received since the implementation of the Code of Good Practice in 2012
In the three and a half years of validity of the Code of Good Practices (CBP) a total of 50,852 families at risk of social exclusion have applied to receive it in order to relieve their mortgage debt. Of these, 23,640 have managed to restructure the mortgage (18,620), the payment date (5,014) or a take away (6). In the first six months of 2015, applications have increased by 17.78% over the second half of the previous year, to 13,436 requests. The semi-annual report has been sent to Parliament today by the Monitoring Committee. The set of measures implemented by the Government in this area has favored 45,000 families. In addition to the application of the CBP, the Social Housing Fund (FSV) has awarded 4,000 homes and 17,551 evictions have been suspended.
Since the launch of the CBP three and a half years ago, 50,852 applications have been registered, of which 23,640 have been resolved. The rest either do not fall within the scope, do not comply with the requirements or have not delivered the necessary documentation. Of the resolved applications, 18,620 ended with a restructuring of the outstanding debt, 6 with a take-off and in 5,014 cases the dation in payment was agreed, with the consequent extinction of the debt.
In the first half of the year, the entities received 13,436 applications, 17.78% more than during the second half of 2014. Of the applications received, a total of 7,141 operations have been resolved (7.73% more). Of these, in 5,970 cases it was concluded with a viable restructuring of the outstanding debt (15.67% more). In 1,171 cases, it was agreed to provide the home in payment of the mortgage debt, 20.17% less. No operation ended with a take away.
The CBP was signed in March 2012 with almost all entities with mortgage activity in Spain, up to 95 today. The Government promoted this Code of voluntary adherence but of mandatory compliance for two years for the signatory entities. The objective was to provide solutions to families with difficulties to pay their mortgage debts, either because they are unemployed or have no income. Three options were established -negotiation of terms and quotas with the entities or debt restructuring, withdrawals and payment dates-, with periods of lack, amortization up to 40 years, reduction of the interest rate applicable to Euribor + 0.25 points e even the possibility of staying in the house by paying a reduced rent.
The exclusion threshold or conditions to qualify for the CBP were also defined. Specifically, it was established that it was first and only housing and that all family members lacked income derived from work or economic activities. In addition, the mortgage quota should be greater than 50% of the net income received by all members of the family unit. They must also lack assets to deal with the debt.
The Government has twice extended the scope of application of both the CBP and the FSV to accommodate a greater number of families. The initial Code was extended in the 2013 Law on measures to strengthen the protection of mortgage debtors, debt restructuring and social rent. Its scope was extended again last February, in the Royal Decree Law of second chance mechanism, reduction of financial burden and other measures of social order.
Among the last modifications introduced, the increase in the annual family income limit is up to three times the IPREM (Public Multiple Income Indicator). Until then it was calculated for 12 payments and goes on to be calculated for 14 -sube from 19,170 to 22,365 euros-, as well as the inclusion of those over 60 years. The limit on the purchase price of real estate was raised from 250,000 to 300,000 euros and the final non-application of the land clauses for debtors located on the threshold of the new CBP was established.
