Spanish bank eviction policy - repossession insanity

[Janet]

And let's not forget the poor sods who are in work, but who are not paid. The Arona lifeguards are not the only ones ... it is commonplace. What are people supposed to do? And how can a country where this is "normal" expect people to listen receptively to arguments that "you do have to pay your debts. you know ... " ...

[Nova]

Perhaps our banking expert on here can advise. (after she has fed the little Piggies of course)

Sorry, this is outside my area of expertise 

[Janet]

 

yes, this has happened, but it's at the bank's discretion ... and the government avowedly supports banks refusing a dacion en pago where the mortgage is cancelled as part of the handback ...

Mortgage legislation in Spain insists, indeed, that the debt remains with the customer even after repossession, and only last year the government made a formal statement that these mortgage rules would stay in place. The government said, in fact, that the rules were "impossible to amend".

After riots in the streets, a couple of repossessions have been granted where the mortgage has been wiped out in the process. It remains to be seen whether this becomes widespread ... but it is not supported by law ...