Spanish bank eviction policy - repossession insanity

[Janet]

That's exactly what it sounds like, G.

[Perikles]

I think it boils down to what is understood by 'abusive practice' by the bank, and this is to some extent a subjective opinion. For example, one case where a bank was charging 18% interest on payments in arrears. This was in the small print of the mortgage. There would have been a time when the judge would have shrugged his/her shoulders and said tough, it's in the contract. Now, they might reject such conditions as being abusive. Again, the judge might consider a bank's refusal to accept a 'dación en pago' as abusive if the outstanding sum is not much more than the the bank's valuation. The banks can no longer expect that unreasonable clauses in mortgage contracts will be accepted, even if the client has signed up. Of course, the room for maneuvre will be limited, but it is sending a strong message to the banks.

[Perikles]

Banks are quietly admitting that their greed led to giving mortgages to many people who should never have been owners because their income was too unreliable or insufficient to maintain it. El País - nice cartoon.

[Pelinor]

A little late but welcome. The Spanish government is reported to have suspended all house evictions of all vulnerable persons for the next two years. What exactly vulnerable means is yet to be clarified. Lets face it they couldn't do anything less could they. I am pleasantly surprised at the two year suspension this will be a great relief for many in Spain.

[Janet]

I wonder what the government will say to this. The banks are obviously trying to get in first because the Government is meeting this afternoon and evening with the opposition socialist party to try to find a solution to this increasingly tragic problem.

[Michael]

For the first time I heard this and the suicide mentioned on the Radio 4 news tonight.

[Janet]

Two suicides and an unsuccessful attempt so far on the mainland, and the hunger strikers in Santa Cruz ...

This will get ugly if they don't find some solution bloody quickly.

[Perikles]

This is getting really interesting. HERE is a report of one mayor who has declared that people being evicted will have free legal advice from the ayuntamiento lawyers and that the ayuntamiento will adopt a policy of non-compliance when an eviction is ordered by the court. That means that local police will be instructed not to assist.

[Myrtle Hogan-Lance]

And in related news, a woman in Valencia is trying to sell off her 'unneeded' organs to pay the rent!  She' says she's facing eviction too.  Story here.

[Janet]

This is why one needs a welfare state .....